Which of the following is true regarding the preparation and delivery of the closing disclosure?

The statement that the creditor is ultimately responsible for ensuring that the borrower receives the closing disclosure is accurate because it reflects the legal obligations established under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). According to the TILA-RESPA Integrated Disclosure Rule, it is the creditor’s duty to provide the borrower with the closing disclosure, which details the terms of the loan and the closing costs associated with the transaction.

While creditors can use settlement agents or third parties to assist in delivering the closing disclosure, the ultimate responsibility lies with the creditor. This means that even if a settlement agent is involved, the creditor must ensure that the borrower receives the document in a timely manner, typically at least three business days before the closing date. This requirement is designed to give borrowers adequate time to review the terms and costs of the loan before finalizing the transaction.

The importance of this responsibility is emphasized in the regulatory framework, which aims to protect consumers by promoting transparency and ensuring that they are fully informed about their mortgage terms. Thus, the creditor’s responsibility is pivotal in ensuring compliance with these regulations and safeguarding the borrower’s interests.