Which law stipulates a minimum closing period of 7 days after early disclosures are given to the borrower?

Which law stipulates a minimum closing period of 7 days after early disclosures are given to the borrower?

• A. National Flood Insurance Program
• B. The Mortgage Assistance Relief Services Act
• C. Mortgage Disclosure Improvement Act
• D. Real Estate Settlement Procedures Act

Answer: (C)

The Mortgage Disclosure Improvement Act (MDIA) establishes protocols for the delivery of early disclosures to borrowers, specifically requiring a minimum waiting period of 7 days before closing can occur. This law was enacted to provide consumers with adequate time to review loan terms and costs, thereby fostering informed decision-making. By mandating this waiting period, the MDIA helps ensure that borrowers are not rushed into finalizing a mortgage, reducing the chance of potential misunderstandings or complaints regarding loan terms. This requirement is part of broader efforts by regulators to enhance transparency in the mortgage process, allowing for a more consumer-friendly approach. The emphasis on carefully considering loan documents before closing aligns with the overall goal of protecting borrowers in a complex financial marketplace.

The Mortgage Disclosure Improvement Act (MDIA) establishes protocols for the delivery of early disclosures to borrowers, specifically requiring a minimum waiting period of 7 days before closing can occur. This law was enacted to provide consumers with adequate time to review loan terms and costs, thereby fostering informed decision-making. By mandating this waiting period, the MDIA helps ensure that borrowers are not rushed into finalizing a mortgage, reducing the chance of potential misunderstandings or complaints regarding loan terms.

This requirement is part of broader efforts by regulators to enhance transparency in the mortgage process, allowing for a more consumer-friendly approach. The emphasis on carefully considering loan documents before closing aligns with the overall goal of protecting borrowers in a complex financial marketplace.