Mortgage Loan Originator (MLO) Licensing Practice Test

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How many business days before loan consummation must a borrower see a revised Closing Disclosure that does not trigger an additional waiting period?

0 business days

1 business day

A borrower must receive a revised Closing Disclosure at least one business day before loan consummation, provided that the revisions do not result in a change that triggers an additional waiting period. This requirement is in place to ensure that borrowers have enough time to review the changes made to the Closing Disclosure, which includes crucial information about loan terms, closing costs, and any potential changes that may affect the borrower’s decision.

If the changes made to the Closing Disclosure do not substantively alter the loan terms—such as interest rates or loan amounts—then only one business day is required for the borrower to be informed of these revisions. This is designed to facilitate smooth and timely closings while ensuring that borrowers are well-informed about their loans. Understanding this timeframe helps borrowers and loan originators adhere to regulatory guidelines and promotes transparency in the mortgage process.

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3 business days

5 business days

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