What APR change triggers a re-disclosure and a 3-day waiting period?

Asked by: Ariane Bartoletti Sr.  |  Last update: September 7, 2025
Score: 4.9/5 (52 votes)

The new rule allows for ordinary changes that do not alter the basic terms of the deal. Only THREE changes require a new 3–day review: 1. The APR (annual percentage rate) increases by more than 1/8 of a percent for fixed-rate loans or 1/4 of a percent for adjustable loans.

What triggers a new 3 day waiting period?

Things like changes to the interest rate, changes to the loan amount, and APR changes over an eighth of a percent, can trigger another waiting period.

What is the 3 day rule for revised closing disclosure?

Your lender is required by law to give you the standardized Closing Disclosure at least 3 business days before closing. This is what is known as the Closing Disclosure 3-day rule. This requirement is thanks to the TILA-RESPA Integrated Disclosures guidelines, which went into effect on October 3, 2015.

What is the 3 day rule for RESPA?

This form integrates and replaces the existing RESPA GFE and the initial TIL for these transactions. The creditor is generally required to provide the Loan Estimate within three-business days of the receipt of the consumer's loan application.

What disclosures are required within 3 days of application?

Disclosure of good faith estimate of costs must be made no later than 3 days after application. This means that a creditor must deliver or mail the early disclosures for all mortgage loans subject to RESPA no later than 3 business days (general definition) after the creditor receives a consumer's application.

What is the closing disclosure THREE day rule?

16 related questions found

What 3 types of disclosures do not require patient authorization?

A covered entity is permitted, but not required, to use and disclose protected health information, without an individual's authorization, for the following purposes or situations: (1) To the Individual (unless required for access or accounting of disclosures); (2) Treatment, Payment, and Health Care Operations; (3) ...

What is a changed circumstance under TRID?

A "change of circumstance" refers to any event that affects the borrower's eligibility for the loan or alters the terms or costs associated with the mortgage transaction. Valid changes of circumstance allow lenders to revise the Loan Estimate without violating the tolerance requirements under the TRID Rule.

Why do you have to wait 3 days after closing disclosure?

When the Know Before You Owe mortgage disclosure rule becomes effective, lenders must give you new, easier-to-use disclosures about your loan three business days before closing. This gives you time to review the terms of the deal before you get to the closing table.

What is the 3 day rule in real estate?

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.

What is the 3-day waiting period for mortgages?

This waiting period gives you time to review all the documents to ensure that the terms you're agreeing to match the terms outlined at the beginning of the mortgage process when you received your loan estimate (which lenders are required to disclose no later than three days after receiving your completed application).

What triggers a revised loan estimate?

You decide to change the kind of loan, for example moving from an adjustable-rate to a fixed-rate loan. You decide to reduce the amount of your down payment. The appraisal on the home you want to buy came in lower than expected. You took out a new loan or missed a payment on another loan, and your credit score has ...

Can buyer waive 3 day closing disclosure?

A consumer may modify or waive the right to the three-day waiting period only after receiving the disclosures required by § 1026.32 and only if the circumstances meet the criteria for establishing a bona fide personal financial emergency under § 1026.23(e).

What are the six pieces of RESPA?

An application is defined as the submission of six pieces of information: (1) the consumer's name, (2) the consumer's income, (3) the consumer's Social Security number to obtain a credit report (or other unique identifier if the consumer has no Social Security number), (4) the property address, (5) an estimate of the ...

What is the 3 day waiting rule?

Statutory Sick Pay is not payable for the first 3 qualifying days in a PIW . These are called waiting days. Waiting days are not always the first 3 days of the sickness absence, as an employee may be sick on non-qualifying days (for example, weekends).

What requires a revised closing disclosure?

Pre-consummation Changes

If you've provided closing disclosures, discovered an inaccuracy, and haven't closed yet, you're in luck. Section 1026.19(f)(2)(i) requires/permits creditors to provide corrected closing disclosures if the originals become inaccurate before consummation.

What is the 3 day disclosure rule for loan estimates?

The Disclosure time period begins on the business day following receipt of the consumer's application. Loan Estimate -Initial disclosure (Delivery): The lender must provide the initial Loan Estimate no later than 3 business days (using the general definition of business day) after application is received.

Which of the following circumstances requires a new three-day review of the closing disclosure?

Changes that require creditors to provide a new Closing Disclosure and an additional three-business-day waiting period after receipt include: changes to the APR above 1/8 of a percent for most loans (and 1/4 of a percent for loans with irregular payments or periods) changes the loan product.

What is an example of a 3 day rescission period?

The right of rescission ends at midnight of the third business day. For example, if Monday is day one, Tuesday is day two, and Wednesday is day three, your right to cancel the transaction expires one minute after 11:59 p.m. on Wednesday when the calendar switches over to Thursday.

What would trigger the 3 day waiting period resulting in a delay in closing?

If the overstated APR is inaccurate under Regulation Z, the creditor must ensure that a consumer receives a corrected Closing Disclosure at least three business days before the loan's consummation (i.e., the inaccurate APR triggers a new three-business day waiting period).

Does a decrease in APR by 0.125% require a 3 day waiting period?

§ 1026.22(a)(3). Bureau clarified that “A decrease in APR will not require a new 3-day review if it is based on changes to interest rate or other fees.”

What is the clear to close 3 day rule?

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.

Can closing disclosure change after signing?

Can closing costs change after the initial Closing Disclosure (CD)? Your initial CD will summarize your final figures, however there can be small last-minute changes to the final figures as the lender and the title or settlement agent balance figures with each other.

What qualifies as a change in circumstance?

A Change in Circumstance (CIC) occurs whenever a report is received that prompts a change in a data element that requires a redetermination of eligibility; this allows the MC RD due date to be reset for a new 12-month period.

Can APR change on a loan estimate?

Your lender is allowed to change the costs on your Loan Estimate only if new or different information is discovered in the process (such as the examples above). If you think your lender has revised your Loan Estimate for a reason that's not valid, call your lender and ask them to explain.