When must a borrower receive the Closing Disclosure?

A borrower must receive the Closing Disclosure at least three business days prior to closing. This requirement is part of the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to provide borrowers with clear and comprehensive information about the terms of their mortgage loans. The purpose of this advance delivery is to give borrowers sufficient time to review the final loan terms and associated costs, ensuring they can ask questions or address any concerns before the transaction is finalized.

This three-day period allows for transparency and informed decision-making, which are crucial for borrowers when managing their finances and understanding their obligations under the loan agreement. Providing the disclosure on the day of closing or just a short time before would not meet this regulatory intent, as it would not allow borrowers enough time to process the information they need to make a confident decision. Similarly, receiving it one week before or within 48 hours of closing would not satisfy the required timing framework established by the law.