The Mortgage Disclosure Improvement Act (MDIA) has a rule involving how many days the lender must wait before closing a loan after the early disclosures are delivered?

The Mortgage Disclosure Improvement Act (MDIA) stipulates that lenders must wait a minimum of seven days after providing the Early Loan Estimates to borrowers before closing a loan. This rule was established to ensure that borrowers have ample time to review the critical terms and costs of the loan, promoting transparency and informed decision-making.

By allowing this seven-day waiting period, the MDIA aims to prevent any rush or pressure on borrowers to decide quickly, which contributes to better understanding and preparedness for the loan terms they are agreeing to. This waiting period is essential for borrowers to conduct their due diligence, compare different loan offers, and engage in discussions with their lender or financial advisor if needed.

The prohibition on closing before this seven-day window ensures compliance with the regulations put forth in the MDIA, ultimately protecting both the borrower and the integrity of the lending process.