A covered non-timeshare mortgage will be consummated Friday, March 20. No federal holiday intervenes and no valid waiting-period waiver applies. Under the initial Loan Estimate seven-business-day waiting rule, which delivery or mailing requirement applies?
Correct Answer
A) Mailed or delivered by the 7th business day before consummation
A. Deliver or mail by the seventh business day before consummation. This clock begins at delivery or mailing, not presumed receipt. Thursday, March 12 works: March 13, 14, 16, 17, 18, 19 and 20 are the seven following business days. Scope and exceptions: Saturday counts; Sunday does not. The separate application-based initial disclosure deadline still applies, so satisfying this backward-counted limit alone does not establish compliance. Source: Section 1026.19(e)(1)(iii); comment 19(e)(1)(iii)-2 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
A. Deliver or mail by the seventh business day before consummation. This clock begins at delivery or mailing, not presumed receipt. Thursday, March 12 works: March 13, 14, 16, 17, 18, 19 and 20 are the seven following business days. Scope and exceptions: Saturday counts; Sunday does not. The separate application-based initial disclosure deadline still applies, so satisfying this backward-counted limit alone does not establish compliance.
Why the Other Options Are Wrong
Option B: Received on or before the day the closing disclosure itself is issued
Provision of the Closing Disclosure is not this timing trigger.
Option C: Received no later than the 7th business day before consummation
It substitutes receipt for delivery or mailing.
Option D: Received no later than the 3rd business day before consummation
It confuses this interval with the ordinary Closing Disclosure receipt interval.
Exam Tip
Identify both the triggering event and the applicable business-day definition.
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