How long does a lender have to issue a new Closing Disclosure if there are errors?

A lender is required to issue a new Closing Disclosure if there are errors that necessitate a correction. This procedure is governed by the regulations set forth under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which mandate disclosure accuracy in the home loan process.

If errors are found post-closing, the lender typically has a period of 60 days following the closing date to address these errors by providing an updated Closing Disclosure to the borrower. This ensures that borrowers have timely access to correct information that reflects any changes in their loan terms or costs. Providing this corrective disclosure within the 60-day timeframe helps uphold consumer rights and maintains transparency throughout the lending process.

The other timeframes specified in the choices do not adhere to the regulatory requirements for handling errors in the Closing Disclosure, making 60 days the correct and relevant period for such corrections.