An MLO discovers that a Closing Disclosure was delivered to a borrower's email address, but the email bounced back as undeliverable 2 days before the scheduled closing. The borrower claims they never received it and wants to proceed with closing as scheduled. What must happen?
Correct Answer
B) A new 3-day waiting period must begin once the Closing Disclosure is successfully delivered
Under TRID regulations (12 CFR 1026.19(f)), if the Closing Disclosure is not successfully delivered, the 3-business-day waiting period has not begun. A failed email delivery means the disclosure was not received, and a new 3-day period must start from successful delivery. The waiting period cannot be waived by the borrower, and delivery at closing does not satisfy the advance notice requirement.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(f)), if the Closing Disclosure is not successfully delivered, the 3-business-day waiting period has not begun. A failed email delivery means the disclosure was not received, and a new 3-day period must start from successful delivery. The waiting period cannot be waived by the borrower, and delivery at closing does not satisfy the advance notice requirement.
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