When can you disclose the last revised LE and initial CD?
The lender cannot issue/provide the LE on the same day or after the lender issues/provides the initial CD.
Example: If the revised LE is issued to the borrower on Tuesday, the earliest day that the initial CD can be issued to the borrower is Wednesday.
The borrower must receive that revised LE at least 4 business days prior to closing/signing.
Example: In order to close/sign on Friday, the revised LE must be received no later than Monday (and also the initial CD must be issued and received on Tuesday).
There are 3 primary ways to issue the LE or CD to the borrower: in person, electronically and by mail. When issued by mail or electronically (and in compliance with the ESIGN Act, etc.), we can presume the borrower received the LE or CD using the mailbox rule (i.e. that the consumer is considered to receive the disclosure 3 business days after the disclosure is delivered or placed in the mail). When we have evidence that the borrower received the LE or CD earlier, then we don’t need to use the mailbox rule.