TRID 3 Day Closing Disclosure Rule Explained (2024)

FAQs

How do you calculate the 3 day trid rule? ›

Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery. The three-day period is meas- ured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing.

The requirement for the additional three business-day waiting period once the Closing Disclosure has been delivered applies under three specific scenarios: 1) an inaccurate APR, which violates the established tolerances; 2) the addition of a prepayment penalty; or, 3) a change in the loan product.

What Is The Closing Disclosure 3-Day Rule. Your lender is required by law to give you the standardized Closing Disclosure at least 3 business days before closing. This is what is known as the Closing Disclosure 3-day rule.

The TRID rule requires lenders to provide two disclosure documents to lenders: a loan estimate and a closing disclosure. Because each document must be timed to give the borrower three days to look it over, it's sometimes referred to as the “three-day rule.”

The Loan Estimate must be provided to consumers no later than three business days after they submit a loan application. The second form (Closing Disclosure) is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction.

When your three business-day waiting period starts is determined by your consummation day. This three business-day rule may include Saturdays, but it does not count Sundays or holidays. For instance, if you want to sign on a Friday and a holiday falls on a Thursday, you must receive your closing disclosure on Monday.

A new 3-day waiting period before closing (from the date the borrower receives the revised CD) is required only if 1) the APR varies by more than 1/8 of one percentage point, OR 2) a prepayment penalty is added, OR 3) the loan product has changed.

If your closing disclosure contains one or more of the following inaccuracies, you're entitled to a new three-day review period: If the APR increases more than an 1/8 of a percent for fixed-rate loans or 1/4 of a percent for adjustable-rate loans. If the lender added a prepayment penalty. If the loan product changes.

If you modify the amount of your down payment. If you change the loan product. If the home you're buying appraises at a value different than expected. If there's a change in your credit or the lender cannot verify income.

What should I do if I do not get a Closing Disclosure three days before my mortgage closing? If you have not received this document, you should request one from your lender immediately. You should also not go through with the closing until you receive and review the Closing Disclosure.

Can a loan be denied after closing disclosure? ›

Yes, you could get denied after you've been cleared to close. In the days leading up to your closing, do your best to make sure nothing happens that makes you look like a riskier borrower. Your safest bet is to avoid making any financial moves during this period, such as: Apply for any new credit cards or loans.

How Long Does It Take To Close After You've Been Cleared? Most buyers won't have to wait very long to meet at the closing table once they're clear to close. With that in mind, you should expect at least a 3-day buffer between the time you receive your Closing Disclosure and the day you close.

Substantive changes are less likely but can certainly still happen even after initial signing. Any significant alterations do require the lender to issue an updated Closing Disclosure with an additional mandated 3-day waiting period before closing.

Can a creditor use a Closing Disclosure to document a change in circ*mstance in order to reestablish a baseline for disclosure charges in good faith? Yes, with a valid changed circ*mstance under certain conditions and timing.

An application is defined as the submission of six pieces of information: (1) the consumer's name, (2) the consumer's income, (3) the consumer's Social Security number to obtain a credit report (or other unique identifier if the consumer has no Social Security number), (4) the property address, (5) an estimate of the ...

Lenders are required to provide your Closing Disclosure three business days before your scheduled closing. Use these days wisely—now is the time to resolve problems.

Once you've submitted your six key pieces of information, each lender is required to send you a Loan Estimate within three business days. Allow a few extra days for mail delivery if the lender is using postal mail. If you haven't received a Loan Estimate within that timeframe, call the lender and ask why.

Sundays and legal public holidays don't count toward the three days. To exercise the right to cancel, the borrower must send the lender a letter or a signed copy of the notice they received.

All days except for Sundays and federal holidays, regardless of whether you're open, count them. The general business day works like this. It's only days that you're open for substantially all business functions.