How many days before closing can a borrower request a copy of the HUD-1 if the lender makes 5 or fewer loans annually?

In the context of the federal regulations surrounding mortgage lending, when a lender conducts five or fewer loans in a year, they are typically subject to fewer requirements under the Real Estate Settlement Procedures Act (RESPA). Specifically, these lenders must provide the borrower with a copy of the HUD-1 Settlement Statement at least one day before the closing. This requirement ensures that borrowers have access to essential information regarding the closing costs and other financial aspects of their mortgage transaction in a timely manner, allowing them to review and understand the details before finalizing the loan.

This one-day requirement reflects the intention to protect consumers while recognizing the unique circumstances of smaller lenders. In contrast, larger lenders with more annual transactions can follow different protocols, which usually allow for more advance notice, such as three or more days. This distinction is crucial for understanding the varying obligations lenders have based on the volume of loans they process. Thus, the correct answer reflects the specific timelines mandated for smaller lenders and their borrowers.