The three-day period is measured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing. Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery.
This three business-day rule may include Saturdays, but it does not count Sundays or holidays.
Saturdays count toward this 3-day rule!
The three-day rule requires the counting of “business days,” which are “all calendar days except Sundays and the legal public holidays specified in 5 U.S.C.
Most buyers won't have to wait very long to meet at the closing table once they're clear to close. You should expect the process to follow the clear-to-close 3-day rule, where you receive your Closing Disclosure 3 business days before your closing date.
How do you determine the timeline for closing a deal? Ask the prospect when they need to achieve their goal and work backwards from that date to determine when they need to sign the contract.
Specific Definition: The specific definition does not vary from one lender to the next. It includes all calendar days except Sundays and legal public holidays as specified under 5 U.S.C. 6103(a). This list seldom changes, but it did so recently with the introduction of the Juneteenth holiday in 2021.
A calendar day includes weekends (Saturday and Sunday) and State holidays.
The California Purchase Contract is chock-full of deadlines: three days to place a deposit into escrow; 17 days to perform investigations; scheduling utilities, organizing closing, and many other important details.
The consumer may, after receiving the disclosures required by this paragraph (c)(1), modify or waive the three-day waiting period between delivery of those disclosures and consummation or account opening if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency.
Purpose of the 3-Day Waiting Period
The 3-day waiting period serves a crucial purpose: to empower borrowers with information. It offers an opportunity for reflection, allowing borrowers to compare the final terms with the loan estimate and seek clarification on any discrepancies or concerns.
This is referred to as a Precise Business Day. So, for Closing Disclosure and Rescission purposes, you always count Saturday but never count Sunday as a business day.
For rescission purposes, business days include Saturdays but not Sundays or legal public holidays.
If you are closing on Friday, the lender must have the closing disclosure to you by the preceding Tuesday. This gives you three consecutive days to review the document before closing. However, If you are closing on Tuesday, you are to receive it on the preceding Friday.
You must notify the applicant in writing within three business days of application of the right to receive a copy of any appraisal developed in connection with the application. Appendix C to the rule includes sample text for this disclosure.
The 'calendar days' include all days. Working days, holidays, non-working days, weekends – basically all 7 days in a week. This means that holidays and Sundays, for example, are valid as vacation days. If working days are used, then weekly holidays and non-working days are not counted as vacation days.
The legal weekdays (British English), or workweek (American English), is the part of the seven-day week devoted to working. In most of the world, the workweek is from Monday to Friday and the weekend is Saturday and Sunday.
Court days refer to those days in which the courts are actually open and doing business. Calendar days include all the days of the year, including weekdays, weekends, and holidays. If only the word “days” is used in the code or rule, it applies to calendar days.
All days except for Sundays and federal holidays, regardless of whether you're open, count them. The general business day works like this. It's only days that you're open for substantially all business functions. Now, some of you listening, I know you might be open on a Saturday but are you fully open?
The rule is also known as the TILA-RESPA Rule or TRID. It created new Loan Estimate and Closing Disclosure forms that consumers receive when applying for and closing on a mortgage loan. The Loan Estimate replaced the RESPA Good Faith Estimate (GFE) and the early Truth in Lending disclosure.
For Closing Disclosures, a business day is defined as all calendar days except Sundays and Federal public holidays, such as Labor Day. The Closing Disclosure must be provided to you at least 3 business days PRIOR to loan consummation.
The closing date is set after your mortgage loan has been approved and you accept the commitment letter. Your agent will coordinate this date with you, the seller, your lender, and the closing agent.
Usually the sellers sign first but really it doesn't matter. They don't get any money until they sign everything so technically nothing has changed since you signed yesterday.