According to the TILA-RESPA rule (TRID), how many business days before consummation should a Closing Disclosure be provided to the consumer?

Under the TILA-RESPA Integrated Disclosure (TRID) rule, the Closing Disclosure must be provided to consumers at least three business days prior to the consummation of the loan. This requirement serves to ensure that borrowers have sufficient time to review the final terms and costs associated with their mortgage transaction, promoting transparency and informed decision-making in the lending process.

The three-business-day requirement is particularly important because it allows consumers to carefully assess the details of their loan, including interest rates, monthly payment amounts, and settlement fees, as well as to compare this information with earlier disclosures they received. If any changes occur to the loan terms after the Closing Disclosure is issued, it does require the lender to issue a new form, potentially starting the three-day countdown anew if those changes are significant.

This regulation plays a critical role in consumer protection, emphasizing the need for clear communication and the opportunity to address any questions or concerns before the loan agreement is finalized, thus reducing the potential for misunderstandings or negative surprises at closing.