Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower’s receipt of a Loan Estimate and the closing of a mortgage loan?

Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower’s receipt of a Loan Estimate and the closing of a mortgage loan?
A . 7 business days
B . 15 business days
C . 30 business days
D . 45 calendar days

View Answer

Answer: A

Explanation:

Under the TILA-RESPA Integrated Disclosure (TRID) rule, the borrower must receive the Loan Estimate (LE) at least 7 business days before the closing (also called consummation) of the mortgage loan. This rule ensures that the borrower has sufficient time to review and understand the loan terms and costs.

The 7-day waiting period starts from the day the Loan Estimate is delivered or placed in the mail. This period allows the borrower to ask questions and possibly negotiate terms before finalizing the mortgage.

References:

TILA-RESPA Integrated Disclosure Rule (TRID), 12 CFR §1026.19(e)

Consumer Financial Protection Bureau (CFPB) Guidelines