Which mortgage disclosure is required under the TILA-RESPA Integrated Disclosure rule?

The Loan Estimate and Closing Disclosure are required under the TILA-RESPA Integrated Disclosure rule, which aims to provide consumers with clearer information about their mortgage options and the costs associated with those options.

The Loan Estimate is provided to consumers within three business days of their mortgage application and outlines key loan features, costs, and risks, allowing borrowers to compare loan offers. The Closing Disclosure is given at least three business days before closing the loan, detailing the final terms of the mortgage and all closing costs, ensuring transparency and aiding in informed decision-making.

Both documents work together to facilitate a better understanding of mortgage terms and to enhance consumer protection by standardizing the information presented to borrowers. This is why the combination of these two disclosures is essential under the TILA-RESPA Integrated Disclosure rule.