When must you provide early Truth in Lending disclosures for closed-end loans secured by a consumer's principal dwelling?

To determine when early Truth in Lending disclosures must be provided for closed-end loans secured by a consumer's principal dwelling, it is essential to understand the requirements set by the Truth in Lending Act (TILA). The correct timing for providing these disclosures is within three business days of receiving the loan application and before collecting any fees from the borrower.

This requirement ensures that consumers receive critical information about the loan terms, including costs and interest rates, early in the process, allowing them to make informed financial decisions. Providing this information before any fees are collected helps protect consumers from incurring costs before they're fully aware of the loan terms.

This combination of timing and the stipulation regarding fee collection is crucial for ensuring compliance with the regulations set forth to protect consumers in the mortgage lending process. Hence, it's important for lenders to adhere to this timeline to foster transparency and maintain compliance with federal regulations.