Question

When must a completed Closing Disclosure form for any transaction that falls under the TRID be provided?

1. Within 30 days of the closing
2. Prior to the closing
3. 3 days before the closing
4. At the closing

Answer 1

The completed Closing Disclosure form must be provided three days before the closing for transactions that fall under the TRID.

Step-by-step explanation:

The completed Closing Disclosure form for any transaction that falls under the TRID (TILA-RESPA Integrated Disclosures) must be provided three days before the closing. This is a requirement outlined in the TRID rules, specifically the Loan Estimate and Closing Disclosure rule.

The purpose of providing the Closing Disclosure form three days in advance is to give the borrower time to review and understand the loan terms and costs associated with the transaction. This helps ensure transparency and allows the borrower to make an informed decision before proceeding with the closing.

It is important for lenders and other parties involved in the transaction to follow this timeline and provide the Closing Disclosure form in a timely manner to comply with the TRID regulations.