Question 1

When must the Loan Estimate be provided?

Accepted Answer

The Loan Estimate (LE) must be delivered or placed in the mail no later than 3 business days after the creditor receives a loan application. For LE purposes, a "business day" is any day on which the creditor's offices are open to the public for carrying out substantially all of its business functions. The consumer must receive the LE at least 7 business days before consummation (closing).

Question 2

When must the Closing Disclosure be provided?

Accepted Answer

The Closing Disclosure (CD) must be received by the consumer at least 3 business days before consummation (closing). For CD purposes, a "business day" means all calendar days except Sundays and legal public holidays. If the CD is mailed, it is considered received 3 business days after mailing, effectively requiring delivery 6 business days before closing.

Question 3

What triggers a new 3-day waiting period for the Closing Disclosure?

Accepted Answer

A revised CD with a new 3-day waiting period is required if: (1) the APR increases by more than 1/8% for fixed-rate loans or 1/4% for adjustable-rate loans, (2) the loan product changes (e.g., from fixed to adjustable rate), or (3) a prepayment penalty is added. Other changes to the CD do not require a new 3-day waiting period.

Question 4

What is the right of rescission and when does it apply?

Accepted Answer

The right of rescission gives borrowers 3 business days after closing to cancel certain mortgage transactions. It applies to refinance transactions and home equity loans on a principal residence, but NOT to purchase-money mortgages. The rescission period runs until midnight of the 3rd business day after closing, delivery of the rescission notice, or delivery of all material TILA disclosures — whichever is latest.

Question 5

What constitutes an "application" that triggers TRID timelines?

Accepted Answer

Under TRID, a loan application is defined as the submission of 6 specific pieces of information: (1) consumer's name, (2) consumer's income, (3) consumer's Social Security number, (4) property address, (5) estimated property value, and (6) mortgage loan amount sought. Once a creditor receives all 6 items, the 3-business-day LE clock begins.

Question 6

What are the tolerance levels for Loan Estimate figures?

Accepted Answer

TRID establishes three tolerance categories for LE accuracy: Zero tolerance (fees cannot increase): creditor fees when consumer uses a provider from the written list. 10% tolerance (aggregate cannot increase by more than 10%): recording fees, required third-party services when consumer shops from the list. No limit: prepaid interest, insurance premiums, and services the consumer shops for independently. Tolerance violations require a refund within 60 days of closing.

TILA-RESPA Disclosure Timeline

Calculate Disclosure Deadlines

Understanding TRID Disclosure Rules

Loan Estimate (LE)

Closing Disclosure (CD)

Critical TRID Timelines for the MLO Exam

What Triggers a New 3-Day CD Waiting Period?

Frequently Asked Questions

Related Mortgage Tools

Master TRID for the MLO Exam