Under the TILA-RESPA Integrated Disclosure rule (TRID), how many extra days must a lender extend if the APR changes more than 0.125% before closing?

Under the TILA-RESPA Integrated Disclosure rule (TRID), if the Annual Percentage Rate (APR) changes by more than 0.125% before closing, the lender is required to provide a new Closing Disclosure and must extend the closing date by three business days. This regulation ensures that borrowers have sufficient time to review the new terms of their loan, reflecting any changes in costs associated with the financing.

The three-day extension serves as a consumer protection measure, providing borrowers an opportunity to reassess their decision based on the revised loan terms. This aspect of TRID emphasizes transparency and ensures that borrowers are not rushed into signing documents that reflect changes in financial obligation that could affect their long-term budgeting.

The specific percentage threshold of 0.125% was chosen to denote a significant enough change that could impact the borrower's financial decisions. By mandating a three-business-day wait for any change exceeding this threshold, the regulations aim to prevent confusion and safeguard consumer interests in real estate transactions.