Question 32
Domain 1: Federal Mortgage-Related LawsThe Closing Disclosure must be received by the consumer at least how many days before consummation?
Correct answer: B
Explanation
Under the TILA-RESPA Integrated Disclosure rule, the creditor must ensure the consumer receives the Closing Disclosure "no later than 3 business days before consummation." This waiting period gives the borrower time to review the final loan terms and closing costs before signing.
Why each option is right or wrong
A. 1 business day
B. 3 business days
12 C.F.R. § 1026.19(f)(1)(ii)(A) requires the creditor to ensure the consumer receives the Closing Disclosure no later than 3 business days before consummation. For this timing rule, "business day" is defined in 12 C.F.R. § 1026.2(a)(6) as all calendar days except Sundays and legal public holidays, so the disclosure must be delivered within that 3-business-day window before closing.
C. 5 business days
D. 7 business days