How long do lenders have to refund any excess funds between the Loan Estimate and Closing Disclosure?

Lenders are required to refund any excess funds between the Loan Estimate and the Closing Disclosure within 60 days after closing. This timeframe is mandated to ensure that borrowers receive any overages promptly, which aids in maintaining transparency and accountability within the lending process. This requirement supports consumer protection regulations, allowing borrowers to be reimbursed for any discrepancies that may arise from the estimated costs provided in the Loan Estimate compared to the actual costs listed in the Closing Disclosure.

The choice of 60 days aligns with regulatory guidelines that emphasize timely and fair treatment of borrowers, helping to foster trust and a positive relationship between lenders and their clients.