Chapter 1
Federal Mortgage Laws and Consumer Protection Regulations
Course: Safe Mlo Prep
Subject: Safe Mlo Prep
Chapter: Mortgage Loan Origination Activities
OVERVIEW
Closing is the final step in the origination process — ownership is transferred, loan documents are signed, and funds are disbursed. Understanding the Closing Disclosure timing rules, the signing process, disbursement, and post-closing procedures is essential for every MLO.
- The Closing Disclosure — Timing Requirements
The Closing Disclosure must be received by the borrower at least 3 business days before loan consummation:
- Business day for CD: Every calendar day EXCEPT Sundays and federal holidays — Saturdays count
- The CD must be received — not just sent — 3 business days before closing
- If the CD is mailed, add 3 calendar days for delivery assumption — meaning the CD must be mailed at least 6 days before closing
Three changes that trigger a new 3-day waiting period: