Under the federal truth-in-lending (TIL) disclosure laws, if a borrower's interest rate increases by 0.125% or greater than first disclosed before the close of escrow, escrow may not close for how long after receipt of the new TIL?

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When a Truth in Lending disclosure is updated because the interest rate or APR changes by 1/8 percentage point (0.125%) or more from what was originally disclosed, a new TIL must be issued and a waiting period begins after the borrower receives that updated disclosure. This waiting period lasts three business days before the loan may close. The purpose is to give the borrower time to review the new terms and consider whether to proceed.

So, after the borrower receives the new TIL, escrow cannot close for three business days. For example, if the updated TIL arrives on Friday, the earliest closing would be the following Wednesday (assuming no holidays). This requirement is not a seven-day wait, nor is it a wait until the borrower receives the new TIL, and it isn’t applicable as an absolute regardless of timing.