After receiving a payoff request, how long does a servicer usually have to provide the payoff statement?

The correct timeframe for a servicer to provide a payoff statement after receiving a payoff request is typically 7 business days. This requirement is in place to ensure that borrowers receive timely information about their mortgage balance, especially when they are seeking to pay off their loan or refinance. Providing the payoff statement within this timeframe allows the borrower to have clarity regarding their financial obligations and makes the process smoother for both the borrower and the servicer.

The seven-business-day rule strikes a balance between giving servicers enough time to gather the necessary information while also ensuring borrowers are not left waiting too long for important financial documentation. This responsiveness is vital for maintaining consumer trust and compliance with regulatory requirements set forth by the CFPB. Other longer timeframes would not align with the intent of the regulations, which focus on protecting consumers by minimizing delays in securing important payoff information.