A borrower cannot be required to pay interest on the principal balance of a loan secured by a mortgage on real property for more than how many days prior to disbursement?

The correct answer indicates that a borrower cannot be required to pay interest on the principal balance of a loan secured by a mortgage on real property for more than one day prior to disbursement. This aligns with the regulations that protect borrowers by limiting the period during which interest can accrue before the loan is officially funded. It ensures that borrowers are not unfairly charged for interest on funds that they have not yet received, thus promoting fair lending practices.

Being limited to one day effectively means that any interest charged starts from the date of disbursement rather than earlier, safeguarding the borrower's financial interests and ensuring clarity in loan terms. This policy is part of broader consumer protection laws that aim to make loan processes more transparent and fair for borrowers.