Under RESPA reforms, when must the Closing Disclosure be provided to the borrower?

Under RESPA reforms, when must the Closing Disclosure be provided to the borrower?

• A. It is not required
• B. 3 business days before closing
• C. At closing
• D. After closing

Answer: (B)

Three business days before the closing date, the Closing Disclosure must be provided to the borrower. This waiting period lets the borrower review the final loan terms and closing costs, compare them with the initial Loan Estimate, and ask any questions before signing. Business days exclude weekends and certain holidays, and the countdown starts when the lender delivers the Disclosure. If terms change or a corrected Disclosure is issued, a new three‑day waiting period applies. Providing it at closing or after closing would remove that protective review period, which is why the three‑day rule is required.

Three business days before the closing date, the Closing Disclosure must be provided to the borrower. This waiting period lets the borrower review the final loan terms and closing costs, compare them with the initial Loan Estimate, and ask any questions before signing. Business days exclude weekends and certain holidays, and the countdown starts when the lender delivers the Disclosure. If terms change or a corrected Disclosure is issued, a new three‑day waiting period applies. Providing it at closing or after closing would remove that protective review period, which is why the three‑day rule is required.