How many days must pass after signing the application for initial disclosures to be delivered?

The correct answer is that 3 business days must pass after the signing of the application for the initial disclosures to be delivered. This requirement is established under the Truth in Lending Act (TILA) and its implementing regulations, which dictate that lenders are obligated to provide borrowers with specific key information about the mortgage loan, such as the estimated terms and costs, within three business days of receiving a completed application.

This timeframe is crucial as it ensures that borrowers are adequately informed about the terms of the loan and can make an educated decision. The initial disclosures include important documents such as the Loan Estimate, which outlines key loan terms and estimated costs, helping to promote transparency in the lending process. Thus, the three-day timeframe is not just a regulatory requirement but also a consumer protection measure ensuring that prospective borrowers have ample time to review the information before proceeding.