TILA-RESPA Integrated Disclosure Rule

Three-Day Closing Disclosure Rule

What is helpful for the REALTOR® to know?

  1. Creditors are responsible for providing the Closing Disclosure (CD); however a Creditor may contract with a Settlement Agent to have a CD provided to the consumer on behalf of the Creditor.  The Creditor or Settlement Agent should allow 7 BUSINESS DAYS to provide the CD via mail or email.  The 3 day rule applies if couriered with receipt or hand delivered.  For the purpose of delivering the Closing Disclosure, “Business Days” is defined as follows:

All calendar days except Sundays and legal public holidays specified in 5 U.S.C. 6103(a)

  • New Year’s Day
  • Martin Luther King, Jr.’s Birthday
  • Washington’s Birthday
  • Memorial Day
  • Independence Day
  • Labor Day
  • Columbus Day
  • Veterans Day
  • Thanksgiving Day
  • Christmas Day
  1. Changes that require creditors to provide a new Closing Disclosure and an additional three-business-day waiting period after receipt include:
    • Increases to the APR greater than 1/8 of a percent for most loans (and ¼ of a percent for loans with irregular payments or periods)
    • Changes to the loan product
    • Addition of a prepayment penalty to a loan
  2. “The customer can waive three-business-day waiting period for a bona fide financial emergency.” 12 C.F.R § 1026.19(f)(1)(iv) (eff. October 3, 2015).*

*Experts in the industry agree that customers will very rarely be granted the right to waive the three-business-day waiting period and ONLY in cases of extreme financial hardship.  They also agree that hotel costs and moving expenses will not be considered a financial emergency.

For additional information and form samples, visit cfpb (Consumer Financial Protection Bureau) at www.consumerfinance.gov

 

Benchmark Mortgage Companies

Benchmark Mortgage Compaines NMLS# 41552
(www.nmlsconsumeraccess.org).
Equal Housing Lender.

Licensed in Virginia, North Carolina & Florida.

VSCC Bureau of Financial Institutions, P.O. Box 640, Richmond VA 23218-0640, (1-800-552-7945) www.scc.virginia.gov/bfi

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