Closing Disclosure: The Three-Business-Day Wait

If you’re buying with a mortgage, the Closing Disclosure is the form with your final loan terms and costs. A federal rule sets how early it has to reach you.

The timing rule

12 CFR 1026.19(f)(1)(ii)(A) says the creditor shall ensure that the consumer receives the disclosures no later than three business days before consummation.

How the days are counted

For this rule, 12 CFR 1026.2(a)(6) defines a business day as all calendar days except one day each week (named in the regulation) and the legal public holidays specified in 5 U.S.C. 6103(a), which include Columbus Day. This year that is Oct 12. If the disclosures aren’t provided to you in person, you’re considered to have received them three business days after they’re delivered or placed in the mail.

What restarts the wait

Under 1026.19(f)(2)(ii), if the annual percentage rate becomes inaccurate, the loan product is changed, or a prepayment penalty is added, the creditor must make sure you receive corrected disclosures under the same three-business-day timing.

Waiving the wait

Under 1026.19(f)(1)(iv), if you determine the loan is needed to meet a bona fide personal financial emergency, you may modify or waive the waiting period with a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and is signed by all consumers primarily liable on the loan. Printed forms for this purpose are prohibited.

Under 1026.19(f)(2)(iii), if an event in connection with the settlement happens during the 30-day period following consummation, makes the disclosures inaccurate and changes an amount you actually paid, the creditor must deliver or mail corrected disclosures within 30 days after receiving information sufficient to establish that the event occurred.

Under 1026.19(f)(2)(iii), if during the 30-day period following consummation an event in connection with the settlement makes the disclosures inaccurate and changes an amount you actually paid, the creditor must deliver or mail corrected disclosures within 30 days after getting information sufficient to establish that the event occurred.