What is required when presenting a loan estimate or closing disclosure to a borrower?

• A. Disclosures must be clear and accurate and comply with TILA/RESPA timing
• B. Disclosures can be verbal only
• C. Disclosures are optional for fixed-rate loans
• D. Disclosures require only regulatory review after closing

Answer: (C)

Disclosures must be clear and accurate and comply with TILA/RESPA timing. Under TRID, the Loan Estimate and Closing Disclosure must be in writing, presented in a way the borrower can understand, and delivered within specific timeframes. The Loan Estimate is typically provided within three business days after a borrower’s application, and the Closing Disclosure must be provided at least three business days before closing. These disclosures reflect the loan terms, projected payments, and costs, and must be accurate as of the disclosure date. They are not optional for fixed-rate loans, and they cannot be verbal or provided only after closing for regulatory purposes. This timing and clarity ensure borrowers have meaningful information before committing to a loan.