What is the new definition of a loan application:

Upon receipt of the following items, the lender is required to provide a Loan Estimate to the consumer within 3 GENERAL business days:

  1. Consumer’s name
  2. Consumer’s income
  3. Consumer’s SSN (to obtain credit report)
  4. Property Address
  5. Estimated Value of the Property
  6. Requested Mortgage Loan Amount

Under the new rule we will have 2 different definitions of business day. General Business Day definition applies to the delivery by lender to the consumer of the Loan Estimate and the Special Information Booklet.

Specific Business Day definition applies to the

following:

  1. Waiting period (7 specific business days) from consumer receipt of Loan Estimate to Consummation
  2. Loan Estimate is deemed received by consumer (3 specific business days) after delivery or mailing
  3. Closing Disclosure must be delivered (3 specific business days) prior to consummation
  4. Closing Disclosure deemed received by consumer (3 specific business days) after delivery or mailing

General Business Day vs Specific Business Day:

General Business Day: A day on which the offices of the creditor are open to the public carrying on substantially ALL of the creditor’s business functions;

Specific Business Day: All calendar days except for Sundays and the following legal public holidays:

New Year’s Day – January 1

Martin Luther King Jr. Day – 3rd Monday in January

Washington’s Birthday – 3rd Monday in February

Memorial Day – last Monday in May

Independence Day – July 4

Labor Day – 1st Monday in September

Columbus Day – 2nd Monday in October

Veteran’s Day – November 11

Thanksgiving Day – 4th Thursday in November

Christmas Day – December 25

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