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Timing of the Closing Disclosure

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Question: 
We have several supermarket branches that are open for business seven days a week and it's not unusual for our mortgage lenders to have appointments with potential mortgage customers on Sundays. If a mortgage applicant receives her TRID closing disclosure in person on Sunday, can her loan close three business days later, on Wednesday?
Answer: 

You would think so, but that's not how the timing rule for delivery of the closing disclosure works. Here's what the rule says (1026.19(f)(1)(ii)(A)):

"...the creditor shall ensure that the consumer receives the disclosures required under paragraph (f)(1)(i) of this section no later than three business days before consummation."

If Wednesday is the intended day for consummation or closing, we count backward to determine when the closing disclosure has to be received. Tuesday is the first business day counting backward, Monday is the second, and -- because this rule is subject to the "precise" definition of "business day," which always includes Saturdays but excludes Sundays -- Saturday is the third business day before consummation. Receipt on Sunday won't meet the requirement.

Unless your borrower has a bona fide personal financial emergency that requires that the closing occur sooner (and she provides the appropriate dated written statement described in section 1026.19(f)(1)(iv) after receiving the closing disclosure), you'll need to reschedule the closing for Thursday or later.

First published on 06/26/2016

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