Question 1

When must the Loan Estimate (LE) be delivered under TRID?

Accepted Answer

The lender must deliver or place in the mail the Loan Estimate within 3 business days of receiving a completed application. An application is considered received once the lender has the six required pieces of information: the borrower's name, income, Social Security number, the property address, an estimate of the property value, and the loan amount sought. Before the borrower receives the LE, the lender may not charge any fee other than a bona fide credit-report fee.

Question 2

How far in advance must the Closing Disclosure (CD) be given?

Accepted Answer

The borrower must receive the Closing Disclosure at least 3 business days before consummation (closing). If the CD is mailed, the mailbox rule applies — it is presumed received 3 business days after mailing, which effectively lengthens the timeline. A new 3-business-day waiting period restarts if the APR becomes inaccurate (more than 1/8% for a fixed loan or 1/4% for an ARM), the loan product changes, or a prepayment penalty is added.

Question 3

What is the 7-day waiting period?

Accepted Answer

Consummation may not occur until at least 7 business days after the initial Loan Estimate is delivered or placed in the mail. This 7-business-day period and the 3-business-day CD waiting period run on their own timelines, and the closing cannot happen until both have been satisfied.

Question 4

What is the 3-day right of rescission, and when does it apply?

Accepted Answer

On a refinance of a borrower's principal dwelling (a non-purchase transaction), the borrower has the right to rescind — cancel — the loan within 3 business days after the latest of: consummation, delivery of the Truth-in-Lending disclosures, or delivery of the two required notices of the right to rescind. Purchase-money mortgages have NO right of rescission. The rescission uses the 'precise/specific' business-day definition (see below).

Question 5

What is the difference between the 'general' and 'precise/specific' business-day definitions?

Accepted Answer

TRID uses two different definitions of 'business day.' The GENERAL definition — used for delivering the Loan Estimate — is any day the creditor's offices are open to the public to conduct substantially all of its business functions. The PRECISE (also called SPECIFIC) definition — used for the CD waiting period, the 7-day waiting period, and the right of rescission — is all calendar days except Sundays and the federal legal public holidays listed in 5 U.S.C. 6103(a). Under the precise definition, Saturdays count as business days but Sundays and federal holidays do not. Mixing the two up is one of the most common mistakes on TRID timing questions.

TRID Timeline Calculator

TRID / Reg Z Timeline Calculator

Worked Example

TRID Timelines — Frequently Asked Questions

Practice 5 MLO / NMLS exam questions