Compliance: ‘Mailbox rule’ for TRID timing requirements

CUNA’s compliance staff receives a number of questions about the TILA-RESPA integrated disclosure (TRID) rule, leading to publication of a recent CompBlog post addressing means of delivery and timing requirements for the Loan Estimate and Closing Disclosure forms.

The post summarizes the default rule of law for establishing the time the borrower is deemed to receive the disclosure.

Under TRID, the lender is required:

  • To deliver the loan estimate no later than the third business day after the lender receives the consumer’s application for a mortgage loan; and
  • To ensure the consumer receives the closing disclosure no later than 3 business days before consummation of the loan. Consummation is the moment the borrower becomes contractually obligated on the loan, after signing the loan documents.

Regulation Z provides that if any required disclosures are not provided to the consumer in-person, then the consumer is considered to have received the disclosures 3 business days after they are delivered or placed in the mail (the “mailbox rule”).


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