For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
Correct Answer
A) 3 business days before the construction loan closing
Under TRID regulations (12 CFR 1026.19(f)), construction-to-permanent loans that are disclosed as two separate transactions require separate Closing Disclosures. The construction phase Closing Disclosure must be provided 3 business days before the construction loan closing, and a separate Closing Disclosure is required for the permanent phase.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(f)), construction-to-permanent loans that are disclosed as two separate transactions require separate Closing Disclosures. The construction phase Closing Disclosure must be provided 3 business days before the construction loan closing, and a separate Closing Disclosure is required for the permanent phase.
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