What law mandates that the appraisal must be delivered 3 business days before closing?

The law that mandates the appraisal must be delivered 3 business days before closing is the Real Estate Settlement Procedures Act (RESPA). This regulation is designed to promote transparency and ensure that borrowers receive important information regarding their mortgage and any related settlement services well in advance of the closing date. Specifically, RESPA requires lenders or mortgage brokers to provide a copy of the appraisal report to the borrower upon completion and at least three business days prior to the closing of the loan.

While other laws mentioned have important roles in mortgage lending—such as the Equal Credit Opportunity Act (ECOA), which focuses on preventing discrimination in lending; the Truth in Lending Act (TILA), which mandates disclosure of loan costs; and the Home Mortgage Disclosure Act (HMDA), which requires data collection about mortgage lending—none of these specifically address the timing of appraisal delivery in the same manner as RESPA does. Thus, the requirement about the appraisal delivery being three business days before closing is firmly rooted in RESPA, making it the correct answer.