Definition
A mandatory document providing borrowers with loan terms and final costs before closing. It's the moment buyers realize they're paying thousands in fees they forgot about or didn't fully understand.
Example Usage
The borrower reviewed the closing disclosure and discovered fees exceeding $8,000, prompting renegotiation with the lender.
Origin
Required by the Dodd-Frank Act (2010) to protect consumers and increase transparency
Fun Fact
Borrowers must receive the closing disclosure at least three business days before closing—not enough time to negotiate, but enough time to panic.
Source: Consumer Financial Protection Bureau (CFPB) Standards
Related Terms
Translate This Term
See “Closing Disclosure” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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