At least how many days prior to closing must a mortgage loan company provide required federal disclosures to the borrower?

The correct answer is two days before closing because federal regulations mandate that mortgage lenders must provide borrowers with certain disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Specifically, the Closing Disclosure, which details the final terms of the mortgage loan as well as the closing costs, must be provided to the borrower at least three days prior to closing. However, prior to the Closing Disclosure, other disclosures may also need to be provided earlier in the process.

In the context of loan processing, disclosing information in a timely manner is critical for ensuring that borrowers have a clear understanding of the terms they are agreeing to and the costs associated with the mortgage. This requirement aims to promote transparency and allow borrowers adequate time to review the information and prepare for the closing process.

The choices referencing one day, three days, or four days either do not comply with the minimum disclosure requirements or extend beyond the necessary timeframe set by regulations.