The updated counterpart to the initial Loan Estimate.
The Closing Disclosure (or CD) is the updated counterpart to the Loan Estimate (or LE) from initial disclosures. The CD provides a breakdown of the projected monthly mortgage payment as well as the estimated cash-to-close figure.
The CD must be “acknowledged” (i.e., e-signed) at least three business days (excluding Sundays and federal holidays) prior to signing the final loan documents. The mandatory waiting period is required by TRID (a series of regulatory guidelines) to allow borrowers time to review the fees and terms before signing final loan documents.