According to federal rules, when must a borrower receive the Closing Disclosure document?

The correct answer is that a borrower must receive the Closing Disclosure document at least 3 days prior to loan consummation. This requirement is part of the Truth in Lending Act and the Real Estate Settlement Procedures Act (TRID), which were designed to ensure transparency in the loan process. The purpose of providing this document at least three days before closing is to give the borrower adequate time to review the terms of the loan and understand the costs involved. It allows borrowers to ask questions or seek clarification on any elements of the closing costs or the loan terms before they sign the final documentation.

This advance notice is critical for preventing any last-minute surprises and helps borrowers make informed decisions, thus promoting a smoother transaction process. The three-day waiting period also applies to any changes made to the closing disclosure after it has been issued, reinforcing the importance of transparency and consumer protection in real estate transactions.