When must a lender provide borrowers with a Closing Disclosure?

The TILA-RESPA Integrated Disclosure (TRID) rule, mandated by the Consumer Financial Protection Bureau (CFPB) under Regulation Z, requires that the lender or closing agent must provide the borrower with the final Closing Disclosure (CD) form at least three business days before the scheduled loan closing, also known as consummation. Consummation is the point in time when a consumer becomes contractually obligated on a credit transaction. This mandatory three-day waiting period allows the borrower sufficient time to review the final loan terms, costs, and fees and compare them to the previously issued Loan Estimate, ensuring they can address any issues before finalizing the transaction.

A. The disclosure must be provided before consummation to allow for a review period, not after the loan is finalized.

B. Providing the disclosure at the end of the closing ceremony is too late and violates the borrower's right to review it beforehand.

C. Providing the disclosure on the day of closing does not satisfy the legally mandated three-business-day review period.

1. Code of Federal Regulations (CFR). The specific timing requirement is codified in federal law.

Source: 12 C.F.R. § 1026.19(f)(1)(ii)(A) - "The creditor shall ensure that the consumer receives the disclosures required under paragraph (f)(1)(i) of this section no later than 3 business days before consummation."

2. Consumer Financial Protection Bureau (CFPB). The CFPB provides official guidance on implementing the TRID rule.

Source: TILA-RESPA Integrated Disclosure Rule: Small Entity Compliance Guide, Version 5.0, December 2018. Section 8.2, "Providing the Closing Disclosure," page 61. The guide states, "The creditor is responsible for ensuring that the consumer receives the Closing Disclosure no later than three business days before consummation."