How many business days before the closing must the borrower receive the initial closing disclosure?

The initial closing disclosure must be provided to the borrower at least three business days before the closing of the loan. This requirement is established under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule, also known as TRID. The purpose of this three-day period is to give borrowers sufficient time to review the terms of the loan, including all closing costs and conditions. This ensures transparency and allows borrowers to ask questions or address any concerns prior to the finalization of their loan.

Understanding this timing is crucial for mortgage loan originators as it helps ensure compliance with regulatory requirements and fosters better communication with clients, ultimately leading to a smoother closing process.