We have an investor that has suspended a loan pending evidence the revised CD was RECEIVED by the borrower at least 4 days prior to closing. Below are the details.

Initial LE - dated 2/2/24
Re-disclosed (COC) LE - dated 3/1/24 - eSign cert shows it was opened & signed by the borrower on 3/4/24
Initial CD - eSign cert shows it was opened/signed on 3/4/24
Final CD - loan closing 3/7/24

Based on these dates, it appears to me that the loan should not have closed until 3/8/24.

Is this correct?

If the loan closed on Thursday March 7th, you count backwards - Wednesday, Tuesday, Monday, which was March 4th. Looks OK to me.

The LOS is saying that the earliest it could close is 3/8/24 because it's NOT counting 3/4/24 (the date the borrower viewed the re-disclosed LE). Instead, it's taking 3/4/24 plus 4 more days. Should 3/4/24 be counted as one of the days?

That is why it was pended - you provided a LE and CD on the same day. It has nothing to do with the timing of the CD. Delaying closing would not cure this violation.

19(e)(4)(ii) comment 1. Revised Loan Estimate may not be delivered at the same time as the Closing Disclosure. Section 1026.19(e)(4)(ii) prohibits a creditor from providing a revised version of the disclosures required under § 1026.19(e)(1)(i) on or after the date on which the creditor provides the disclosures required under § 1026.19(f)(1)(i).

Okay...got it. Thanks!

Just to be clear - in a normal scenario, is the LOS correct in NOT counting the day the LE was reviewed. Or, should it be considered a business day when calculating the waiting period?

The consumer may not receive a LE and a CD on the same business day. Counting the days differently does nothing to cure that error.

I understand that. I have moved onto a different question that has nothing to do with this scenario.

In general, should the date the LE is received be counted as one of the four business days, or do you start with the following day?

Another question - would this be considered a technical error, or a violation? I view it as a violation.

If LE is received on Monday, Closing Disclosure is received on Tuesday, loan can close on Friday....I'm not sure whether that is counting the date the LE is received as one of the four business days or not....it's 4 business days FROM the date the LE is received.

You can either count the day the CD is received as day 0 and close on day 3, or count the day it is received as day 1 and close on day 4. Regardless, if a CD is received on Monday, the earliest you can close in Thursday.

If we closed on a day too early, how would it be cited in an exam? What is the level of severity assigned?

Can't tell you how something would be cited in an exam if it were caught. Things like a one-off vs a pattern and practice would come into play as would the individual examiner's view of the severity.

We use this chart to make sure we don't have three day issues.

Use the TRID Date Calendar on BankersOnline https://www.bankersonline.com/tools/148863