What triggers a new three-day waiting period after delivering the Closing Disclosure?

A new three-day waiting period is triggered when there are changes to loan terms as outlined in the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule. Loan terms include aspects such as the interest rate, the loan amount, and loan features that significantly impact the borrower's repayment obligations.

When any of these key terms change after the Closing Disclosure has been delivered, it is essential to provide the borrower with updated information to ensure they have adequate time to review the revised terms before closing. This protective measure helps ensure that the borrower is fully informed about their financial commitments and can make a well-considered decision.

Other options, while they may be significant issues in a real estate transaction, do not trigger this specific waiting period. For instance, a mere increase in interest rates may not directly affect the terms of a fixed-rate loan already agreed upon or disclosed. Changes in property value, though impactful on the overall transaction, typically do not necessitate a reconsideration of loan terms that would trigger this waiting period. Likewise, adjustments in closing costs may occur without altering the fundamental loan terms requiring the new disclosure and waiting period.