What two federal disclosures must be provided at least two days prior to closing?

The Good Faith Estimate (GFE) and the Truth in Lending Statement (TILA) are two essential federal disclosures that protect borrowers during the mortgage process. Both must be provided to borrowers at least three business days before closing, allowing them time to review the costs, terms, and conditions of their loan.

The Good Faith Estimate provides borrowers with an itemized list of settlement charges they are likely to incur, helping them understand the overall cost of the loan and compare offers from different lenders. This transparency is vital as it aids borrowers in making informed financial decisions.

The Truth in Lending Statement outlines key terms of the loan, including the annual percentage rate (APR), total finance charges, and payment schedule. This disclosure ensures that borrowers are fully aware of the economic impact of their loan over its life, promoting responsible borrowing.

The HUD Statement, on the other hand, which is officially known as the HUD-1 Settlement Statement, is provided at or before closing but does not have the same requirement for delivery at least two days prior to closing. It itemizes actual final terms of the loan and the specifics of closing costs.

Thus, the correct response highlights the two disclosures that must be provided ahead of closing to facilitate informed decision-making by the borrower.