How many days prior to closing can a borrower request a copy of the HUD1 and the Closing Disclosure?

A borrower can request a copy of the HUD-1 Settlement Statement and the Closing Disclosure at least three days prior to closing. This requirement stems from the regulations set forth under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). These laws are designed to ensure that borrowers have adequate time to review the terms and conditions of their mortgage and to understand the costs associated with the loan.

The three-day rule provides borrowers with the opportunity to ask questions and seek clarification on any aspects of the closing documents, which are critical for making informed financial decisions. The HUD-1 is used primarily in reverse mortgages and other transactions not covered by the TILA-RESPA Integrated Disclosure rule, while the Closing Disclosure is more commonly used for loans subject to those regulations. Both documents aim to provide transparency in the costs and terms of the loan.

Understanding this timeframe is essential for borrowers as well as mortgage professionals, ensuring compliance and facilitating a smoother closing process. By knowing that they have at least three days to review the documents, borrowers can better prepare for the final steps in the loan process.