How many days before the grace period expires must a periodic statement be provided to the borrower?

Study for the CFPB Mortgage Compliance Test. Learn with detailed quizzes and flashcards. Understand the key concepts, regulations, and guidelines with comprehensive explanations. Get ready to ace your exam!

A periodic statement must be provided to the borrower at least 21 days before the grace period expires. This requirement is in place to ensure that borrowers receive adequate notice of their payment obligations and can plan accordingly to avoid any late fees or potential negative impacts on their credit.

Providing the statement 21 days in advance gives borrowers sufficient time to review their account status, understand any amounts due, and make preparations to fulfill their payment obligation. This transparency is part of the Consumer Financial Protection Bureau’s (CFPB) efforts to protect consumers and promote responsible lending practices.

The timing is crucial because it balances the lender's need for timely payments with the borrower's need for clear communication regarding their financial responsibilities. This standard contributes to a more informed and empowered borrower, facilitating better financial decision-making.

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