CUNA's compliance staff receives a number of questions about the TILA-RESPA integrated disclosure (TRID) rule, leading to publication of a recent CompBlog post addressing means of delivery and timing requirements for the Loan Estimate and Closing Disclosure forms.
The post summarizes the default rule of law for establishing the time the borrower is deemed to receive the disclosure.
Under TRID, the lender is required:
Regulation Z provides that if any required disclosures are not provided to the consumer in-person, then the consumer is considered to have received the disclosures 3 business days after they are delivered or placed in the mail (the “mailbox rule”).
The creditor may also rely on evidence that the consumer received the disclosures earlier than 3 business days.
The 3 main delivery channels for disclosures are:
When credit unions think about delivering disclosures, they should consider the delivery channel being used and make sure it complies with applicable timing and proof of delivery requirements specific to that delivery channel.
Additional details can be found on the CompBlog post, including links to other resources.