When is the latest that an applicant should receive the Closing Disclosure?

The Closing Disclosure must be provided to the applicant a minimum of three business days before consummation of the loan. This requirement is part of the TILA-RESPA Integrated Disclosure rule, which aims to ensure that borrowers are given sufficient time to review the terms of their loan and any associated costs before finalizing their mortgage. By providing the Closing Disclosure three days in advance, the borrower can make an informed decision, ask questions, or raise concerns about any part of the loan arrangement.

This timeframe is crucial for allowing borrowers to understand the financial implications of their mortgage fully, ensuring transparency in the lending process. The three-day period is designed to prevent any last-minute surprises regarding fees or terms that might arise at closing. The intention behind this rule is to promote clarity and protect consumers in the mortgage process.