Question 24

The Closing Disclosure should be received by the borrower at least 3 days prior to loan consummation.

It is essential for the borrower to receive the Closing Disclosure at least 3 days before the loan consummation to allow adequate time for review and comparison with the Loan Estimate document.

A) at the closing of the transaction.

Receiving the Closing Disclosure at the closing of the transaction does not comply with federal regulations. Borrowers must have sufficient time to review the terms and costs of their loan, which is not possible if the document is provided only at closing.

B) at least 3 days prior to loan consummation.

This option is correct as it aligns with federal requirements, ensuring that borrowers have a minimum of three days to review the Closing Disclosure. This time frame is critical for identifying any discrepancies and making informed decisions.

C) not later than 30 days following the loan consummation.

Providing the Closing Disclosure 30 days after loan consummation is too late for borrowers to address any concerns or issues. Federal rules stipulate that this document must be available much earlier in the process to facilitate proper review.

D) not later than 10 business days following loan application.

While timely, this option does not meet the specific requirement of providing the Closing Disclosure at least 3 days prior to loan consummation. This timeframe is crucial for borrowers to adequately assess their loan details before finalizing their agreement.

Conclusion

The requirement for the Closing Disclosure to be received at least 3 days prior to loan consummation is crucial for borrower protection, allowing time for careful review and comparison with the Loan Estimate. Options A, C, and D do not meet this essential requirement, making B the only correct answer.