Three Business Day Rule (Revised Estimates)
Under the TILA RESPA Rule and Truth in Lending Act (TILA) and Regulation Z, specifically 12 CFR 1026.19(e)(3)(iv), if a Changed Circumstance or Other Triggering Event (TILA-RESPA) or another triggering event occurs that allows a creditor to issue a revised estimate, the creditor must provide that revised estimate within three business days of receiving information sufficient to establish that the changed circumstance or other triggering event has occurred.
This rule applies whether the revised estimate is provided via a Loan Estimate or a HUD-1 Settlement Statement, Special Information Booklet, Closing Disclosure, and Form HUD-11702 for the purpose of Tolerances (Loan Costs). The timely provision of revised estimates is critical for maintaining good faith in disclosures and ensuring compliance with tolerance requirements.
Source material
- cfpb_2018 TILA RESPA rule_executive summary
Study the full exam sections
This page is reference detail. The five SAFE exam study guides put it in context.