Hi BOL, I have a question regarding the Closing Disclosure and the date of Consummation. The TILA-RESPA INTEGRATED DISCLOSURE guide says: 3.1.1 Issuance and Delivery states "The Closing Disclosure must be provided to the consumer at least three business days prior to the consummation." It goes on a little further to say, 3.1.5 Consummation Consummation is not the same thing as closing or settlement. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to the seller on a real estate transaction.

The point in time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable State Law. Can you tell me when that occurs in the State of Pa.

I'm reviewing Loan Estimates and Closing Disclosures in an audit. The Date Issued and the Closing Date are not the consummation date, so how do I know the date that the customer should be receiving the disclosure. Thanks.

For the definition of consummation, the state of PA refers back to the definition in Regulation Z- 226.2(a)(13)- it's the date the consumer becomes contractually obligated on the loan. This is typically the date the consumer signs the loan agreement (note, DOT, Mortgage, etc.). So, you need to ensure that the CD is received at least 3 business days prior to the date the borrower signs the loan documents.

Thanks for your help.