Seven Business Day Waiting Period under TILA

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Question:

On Oct 5, 2009, Dan Persfull responded to a question regarding the new seven business day waiting period under TILA. He responded by stating that the seven days start the day after the disclosures are delivered or placed in the mail. However, commentary to Reg Z states that the seven business days start the day disclosures are placed in the mail. Please clarify.

Answer:

19(a)(2)(i) Seven-business-day waiting period.

1. Timing. The disclosures required by Section 226.19(a)(1)(i) must be delivered or placed in the mail no later than the seventh business day before consummation. The seven business-day waiting period begins when the creditor delivers the early disclosures or places them in the mail, not when the consumer receives or is deemed to have received the early disclosures. For example, if a creditor delivers the early disclosures to the consumer in person or places them in the mail on Monday, June 1, consummation may occur on or after Tuesday, June 9, the seventh business day following delivery or mailing of the early disclosures.

In the above example given by the Commentary, the loan can close on the seventh day after the disclosures are placed in the mail. You never count the day the disclosure are placed in the mail as day one.

First published on BankersOnline.com 8/02/10