Mortgage Loan Originator (MLO) Licensing Practice Test

When is a seller entitled to see the Closing Disclosure prior to loan consummation?

1. 3 business days before

2. 1 business day before

3. On the closing day

4. 5 business days before

The correct answer is: On the closing day

The correct timing for a seller to see the Closing Disclosure is specifically determined by the regulations surrounding the loan closing process. Sellers are entitled to receive the Closing Disclosure on the same day as the loan closing, which is typically referred to as the closing day. This requirement aligns with mortgage regulations that stipulate that the Closing Disclosure is primarily designed to inform the borrower about the final terms and costs of their mortgage. While borrowers are provided with regulations that require them to receive the Closing Disclosure at least three business days prior to consummation, sellers typically do not have the same rights or timelines regarding when they must receive this document. The other specified time frames such as three business days, one business day, or five business days do not apply to sellers under current regulations. Therefore, the timing of the seller's access to the Closing Disclosure is indeed on the closing day itself, ensuring that all parties can review the final terms and disclosures prior to the actual transaction.