What happens if the closing disclosure is provided via mail?

When the closing disclosure is provided via mail, it is considered received three business days after it has been sent. This rule is established by the Truth in Lending Act and the Real Estate Settlement Procedures Act (TILA-RESPA Integrated Disclosure rule). The three-day period allows borrowers time to review the disclosure, ensuring they have adequate opportunity to understand the terms of their loan, including closing costs and other important financial information.

This timeline is significant in mortgage transactions because it emphasizes the importance of transparency and comprehension for borrowers before finalizing any agreements. By allowing this three-day period, the regulations aim to protect consumers and ensure they are fully informed before they commit to the loan. The other options do not accurately reflect the regulatory framework surrounding the delivery of the closing disclosure through mail.