Q: How is the Disbursement Date disclosed on the Closing Disclosure for construction loans?
A: When disclosing the disbursement date on the Closing Disclosure for a construction loan, or on the separate Closing Disclosure or the construction phase, the disbursement date is the date that some or all of the loan amount is paid to the consumer, seller, or a third party other than the settlement agent. (§ 1026.38(a)(3)(iii))
The disbursement date may be, for example, the date closing costs are paid with loan proceeds, the date some of the loan amount is paid to the seller in a purchase transaction that involves construction, or the date of the first scheduled draw in a loan that involves construction but not purchase or refinance. If the date is not known at the time the Closing Disclosure is provided, a creditor may estimate the date using the best information reasonably available.