When must a borrower receive their final Truth in Lending disclosures?

The correct answer is that a borrower must receive their final Truth in Lending disclosures at or before the closing of the loan. This timeline is essential because the disclosures are intended to provide borrowers with critical information regarding the terms of their loan, including the finance charges, annual percentage rate (APR), and payment schedule. By requiring these disclosures before or at the closing, borrowers have the opportunity to understand the full implications of their loan agreement, ensuring informed decision-making before they finalize their commitment.

Receiving these disclosures at this stage helps prevent misunderstandings or disputes that could arise after the loan is finalized. It promotes transparency and protects borrowers from potential predatory lending practices. In contrast, receiving disclosures after the loan has been funded would not afford borrowers any opportunity to reconsider their options or terms, and receiving them only upon request would not ensure that all borrowers automatically receive this important information. Disclosures given before the loan application is completed would also not accurately reflect the terms of the loan being offered at that specific time, potentially leading to confusion.