CFPB TRID Sec. 11.12 - Does the three-business-day waiting period apply when corrected Closing Disclosures must be issued to the consumer?

Compliance > Regulation Z - TILA / TRID Specific > Closing Disclosures
Q:  Does the three-business-day waiting period apply when corrected Closing Disclosures must be issued to the consumer?
 
A:  Yes, in some circumstances. The three-business-day waiting period requirement applies to a corrected Closing Disclosure that is provided when:
  • The loan’s disclosed APR becomes inaccurate;
  • There are changes to the loan product; or
  • A prepayment penalty is added to the loan. (§ 1026.19(f)(2)(ii))
If other types of changes occur, creditors must ensure that the consumer receives a corrected Closing Disclosure at or before consummation. (§ 1026.19(f)(2)(i))
 
For more information on providing a corrected Closing Disclosure, see section 12 below (in the Bureau’s compliance guide).
 
 
This Closing Disclosure / CD information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

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