Which statement best describes the Closing Disclosure (CD) timing rule?

Which statement best describes the Closing Disclosure (CD) timing rule?

• A. It must be provided 3 business days before consummation
• B. It must be provided after closing
• C. It must be provided 5 days before application
• D. It must be provided at closing

Answer: (A)

Under TRID, the Closing Disclosure must be delivered to the borrower at least three business days before consummation. This waiting period gives the borrower time to review the final loan terms and closing costs and to compare them with the earlier Loan Estimate, helping prevent surprises at closing. The three days are counted as business days, excluding Sundays and federal holidays. Delivering the CD at closing would skip this required review window, and giving it five days before application does not reflect the mandated timing for the final disclosure. If changes occur that require a re-disclosure, another three-business-day period may apply.

Under TRID, the Closing Disclosure must be delivered to the borrower at least three business days before consummation. This waiting period gives the borrower time to review the final loan terms and closing costs and to compare them with the earlier Loan Estimate, helping prevent surprises at closing. The three days are counted as business days, excluding Sundays and federal holidays. Delivering the CD at closing would skip this required review window, and giving it five days before application does not reflect the mandated timing for the final disclosure. If changes occur that require a re-disclosure, another three-business-day period may apply.