- Deliver good faith estimates of mortgage loan costs, or place them in the mail, within three business days after receiving a consumer’s application for a mortgage loan, and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer’s credit history;
- Wait seven business days after providing the good faith estimate before closing the mortgage loan; and
- Provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the mortgage loan, if the APR at the time of consummation differs from the APR stated in the early disclosures by more than 1/8 of 1 percentage point, as a general rule.1
1 As a general rule, the accuracy tolerance is 1/8 of 1 percentage point in a regular transaction and 1/4 of 1 percentage point in an irregular transaction. An irregular transaction is one that includes multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular final payment). Refer to Section 226.22 of Regulation Z for further discussion regarding APR accuracy tolerances.