When is a closing disclosure considered "received" if delivered electronically?

A closing disclosure is considered "received" when delivered electronically three business days after the delivery date. This rule is in place to ensure that borrowers have adequate time to review the closing disclosure before finalizing a loan. The requirement is part of the Truth in Lending Act (TILA) known as the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to provide transparency and protect consumers in real estate transactions.

The rationale for this three-business-day period allows borrowers to carefully examine the terms of their loan, compare it with their Loan Estimate provided earlier, and ask any questions they may have. While some may presume that immediate confirmation upon delivery should suffice, the legislation emphasizes consumer protection and ensures that individuals can effectively review important financial documents without being rushed.

Understanding this timeframe is crucial for real estate professionals, as compliance with these regulations directly affects the closing process and the borrower’s ability to make informed decisions.