What regulation mandates the provision of the Closing Disclosure document?

The TILA-RESPA Integrated Disclosure Rule (TRID) is the regulation that mandates the provision of the Closing Disclosure document. TRID combines aspects of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) to create a more straightforward and efficient process for consumers, ensuring they receive important information about the terms of their loans and closing costs in a clear format.

Under TRID, the Closing Disclosure must be provided to borrowers at least three days before closing on a mortgage loan. This requirement ensures that consumers have adequate time to review the final terms and costs of their loan, promoting transparency and helping them to make informed decisions.

The integration of TILA and RESPA through TRID aims to reduce confusion and improve the overall borrowing experience by streamlining the documents involved in the mortgage process. This regulation signifies an essential evolution in consumer protection measures, emphasizing the importance of clearly presented information about loan terms and settlement costs.