Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction?

Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction?

• A. Closing Disclosure
• B. Escrow Closing Notice
• C. Loan Estimate
• D. Mortgage Servicing Transfer Disclosure

Answer: (A)

The key idea is the Closing Disclosure. This document, required by TRID, spells out the final loan terms and the exact closing costs in a detailed, line-by-line format. It must be provided to the borrower no fewer than three business days before closing, so the borrower has time to review the final numbers and compare them to the loan estimate. The Loan Estimate covers estimated costs and terms presented early in the process (within a few days of applying) and is not the final, actual costs prepared for closing. The other documents listed—the Escrow Closing Notice and the Mortgage Servicing Transfer Disclosure—serve different purposes and do not present the final closing costs in the same way.

The key idea is the Closing Disclosure. This document, required by TRID, spells out the final loan terms and the exact closing costs in a detailed, line-by-line format. It must be provided to the borrower no fewer than three business days before closing, so the borrower has time to review the final numbers and compare them to the loan estimate.

The Loan Estimate covers estimated costs and terms presented early in the process (within a few days of applying) and is not the final, actual costs prepared for closing. The other documents listed—the Escrow Closing Notice and the Mortgage Servicing Transfer Disclosure—serve different purposes and do not present the final closing costs in the same way.