What rule governs the delivery timeline for the Closing Disclosure?

The Mailbox rule governs the delivery timeline for the Closing Disclosure, which is a key document provided to borrowers in connection with their mortgage loans. According to the Mailbox rule, a document is considered delivered to the borrower when it is placed in the mail or otherwise sent, rather than when the borrower actually receives it. This means that lenders and loan officers must ensure that the Closing Disclosure is sent out at least three business days prior to the closing date, allowing borrowers adequate time to review the terms and costs associated with their loan.

Understanding this timeline is crucial for compliance with the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which aim to provide transparency in the mortgage process. The focus on the Mailbox rule highlights the importance of timing and delivery methods in ensuring that borrowers have sufficient opportunity to make informed decisions about their loan before closing.