How many business days before closing is the Final Loan Estimate required to be received by the borrower?

The Final Loan Estimate must be provided to the borrower no less than 4 business days before closing. This requirement is set forth by the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to ensure that borrowers have sufficient time to review the loan terms and make informed decisions. The 4-day period is intended to give borrowers ample opportunity to understand the final terms of their mortgage, including the costs and any changes from the initial Loan Estimate they received earlier.

It's essential for borrowers to be well-informed before they sign any closing documents, and the 4 business day timeline serves to facilitate that process. The timing helps prevent last-minute surprises and allows for questions or negotiations should there be discrepancies in the final figures.

Adhering to this regulation is a critical part of compliance for mortgage loan originators, ensuring they provide necessary disclosures in a timely manner to protect consumers and promote transparency in the lending process.