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A borrower submits a complete loan application on Monday, March 2nd. The lender delivers the initial Loan Estimate on Tuesday, March 3rd (within the required 3 business days). Under the Mortgage Disclosure Improvement Act (MDIA), what is the earliest the loan can close?

Loan Origination Activities · 27% of the SAFE examhard

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Correct answer: Wednesday, March 11th — 7 business days after the initial LE was delivered

The Mortgage Disclosure Improvement Act (MDIA) requires a 7-business-day waiting period between when the initial Loan Estimate (early TIL disclosure) is delivered and when the loan can close. If the LE was delivered Tuesday, March 3rd, counting 7 business days (excluding Sundays and federal holidays): Wed 3/4, Thu 3/5, Fri 3/6, Mon 3/9, Tue 3/10, Wed 3/11 = the earliest closing is Wednesday, March 11th. This is separate from the TRID 3-business-day Closing Disclosure waiting period, which runs concurrently. "Friday, March 6th — 3 business days after LE delivery" confuses the TRID CD waiting period with MDIA. "Monday, March 9th — 5 business days after application" uses an incorrect 5-day period. "Tuesday, March 10th — 7 calendar days after the init..." incorrectly uses calendar days instead of business days. Note: MDIA business days follow standard TILA rules where Saturdays may or may not count depending on whether the creditor's offices are open.

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