How many days before the closing must the closing disclosure be sent to borrowers?

The correct answer is that the closing disclosure must be sent to borrowers at least three days before the closing. This requirement is part of the regulations established by the Consumer Financial Protection Bureau (CFPB) under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).

The purpose of providing the closing disclosure three days prior to the closing is to give borrowers sufficient time to review the terms of their mortgage, including all costs associated with the loan and the settlement process. This period is critical for borrowers, as it enhances transparency and allows them to ensure that all information is accurate and to raise any concerns before finalizing the transaction.

This requirement also reflects a broader move towards consumer protection in the real estate market, ensuring that borrowers are not rushed into making significant financial decisions without fully understanding the implications. By enforcing this three-day waiting period, regulations also help prevent last-minute surprises that could adversely affect the closing process.