When must the servicing disclosure be provided to the borrower?

The servicing disclosure must be provided to the borrower within three business days after the application. This requirement is set forth by the Real Estate Settlement Procedures Act (RESPA) to ensure that borrowers are informed about who will service their mortgage loan and the potential implications of that servicing relationship.

By providing this disclosure promptly, borrowers have the opportunity to understand the terms and conditions of their mortgage servicing, which includes information about how their payments will be processed and whom to contact for servicing-related inquiries. This timely delivery of information is crucial in fostering transparency and allowing borrowers to make informed decisions regarding their loan.

The other timeframes mentioned—seven business days prior to closing, 30 calendar days after closing, or anytime after—would not comply with RESPA’s requirements. These alternatives do not align with the regulatory standards designed to protect consumers, which prioritize timely communication early in the mortgage process.