How long must you wait to sign loan documents after a trigger for re-disclosure?

The correct answer is three (3) days, which aligns with the requirements set forth by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). When a trigger for re-disclosure occurs, such as if there are significant changes to the loan terms or the costs associated with the transaction, lenders are mandated to provide a new closing disclosure to the borrower.

Following this re-disclosure, there is a waiting period of three business days before the borrower can sign the loan documents. This waiting period is intended to give the borrower adequate time to review the revised terms and conditions of the loan, ensuring they understand the implications of the changes and can make an informed decision.

This regulation is crucial for protecting borrowers and promoting transparency in the lending process, helping them to avoid situations where they might be caught off guard by sudden changes to their loan terms.