12 CFR 1026.19(f), Regulation Z
The Closing Disclosure: your 3 days to check the numbers
The Closing Disclosure is the five-page final version of your Loan Estimate, and federal law requires that you receive it at least 3 business days before you close. Those days exist for one purpose: so you can set the two forms side by side and confirm the deal you are signing is the deal you were quoted.
The 3-business-day rule
You must receive the Closing Disclosure no later than 3 business days before consummation (12 CFR 1026.19(f)(1)(ii)). If it is mailed, it is considered received 3 business days after mailing unless you actually get it sooner. If the lender then changes the APR beyond allowed limits, changes the loan product, or adds a prepayment penalty, a corrected form must be issued and a new 3-day period starts. The waiting period can be waived only for a bona fide personal financial emergency, documented in writing, and never as a routine scheduling convenience.
How to compare it to your Loan Estimate
The forms were designed to line up. Page 2 of the Closing Disclosure uses the same lettered sections (A through J) as page 2 of the Loan Estimate, and page 3 includes a Calculating Cash to Close table that lists each Loan Estimate figure next to the final figure with a did-this-change column. Work through three checks, in order:
- Page 1, Loan Terms: same rate, same monthly payment, same loan amount, and the same answers in the can-this-increase boxes.
- Page 2, section A: origination charges, identical to the Loan Estimate unless a documented changed circumstance intervened.
- Page 3, Calculating Cash to Close: any line marked as changed should have an explanation you recognize, not a surprise.
The three tolerance categories
Zero tolerance: may not increase at all
The lender's origination charges (section A), fees for required services you were not allowed to shop for (section B), and transfer taxes. Any increase without a valid changed circumstance is a violation (12 CFR 1026.19(e)(3)(i)).
10 percent tolerance: capped as a group
Recording fees, plus required third-party services where you chose a provider from the lender's written list (section C). The category total at closing may exceed the Loan Estimate total by no more than 10 percent (12 CFR 1026.19(e)(3)(ii)).
Unlimited: can change, but must be estimated in good faith
Prepaid interest, homeowner's insurance, escrow deposits, and services where you chose your own provider off the list. These track your closing date and your choices, not the lender's pricing, though the original estimates still must have been made on the basis of the information reasonably available (12 CFR 1026.19(e)(3)(iii)).
How to demand a cure
If a zero-tolerance line rose, or the 10-percent bucket went over its cap, the rule entitles you to a refund of the excess, called a cure, within 60 days after closing (12 CFR 1026.19(f)(2)(v)). The request is short: identify the line, show the Loan Estimate figure next to the Closing Disclosure figure, cite the tolerance, and ask for the refund in writing. Many lenders cure at the closing table once the line is pointed out; the comparison tables on page 3 exist so the problem is visible before you sign. If the lender declines, a CFPB complaint puts the same comparison in front of a regulator with the lender required to respond.
Common questions
Can my closing date move if the Closing Disclosure is late?
Yes. The 3-business-day waiting period is mandatory, and if the form arrives late or certain terms change (the APR beyond set limits, the loan product, or a prepayment penalty appears), a new 3-day period starts. A lender cannot ask you to waive it for convenience; waivers exist only for bona fide personal financial emergencies, in writing.
What if a zero-tolerance charge went up at closing?
The lender must refund the excess within 60 days after consummation (12 CFR 1026.19(f)(2)(v)). Point to the specific line, compare it to your Loan Estimate, and ask in writing for the cure. This is a defined obligation, not a favor.
What if the 10 percent bucket went over?
Add up the charges in the 10-percent category (recording fees plus third-party services where you used the lender's list). If the total at closing exceeds the Loan Estimate total by more than 10 percent, the difference above 10 percent must be refunded, on the same 60-day schedule.
Who do I contact if the lender will not cure?
Submit a complaint to the CFPB at consumerfinance.gov/complaint; the lender must respond there. Your state's financial regulator also takes mortgage-origination complaints. Keep both disclosure forms; they are the whole case.
Sources
12 CFR 1026.19(f) (Closing Disclosure timing and corrected disclosures); 12 CFR 1026.19(e)(3) (tolerances); 12 CFR 1026.19(f)(2)(v) (the 60-day cure); 12 CFR 1026.38 (the form's content). Mortgage Rulebook is an independent educational site and is not a lender, broker, or law firm. Nothing here is legal or financial advice.