Question

A new Closing Disclosure must be issued, so the closing date must be moved back.

Any interest rate change of more than 1/8 of a percent requires a new Closing Disclosure, triggering a new three-day waiting period.

Answer 1

The question addresses the need for a new Closing Disclosure and the associated three-day waiting period if an adjustable-rate mortgage's interest rate changes significantly due to inflation or other factors.

Step-by-step explanation:

The subject in question involves the closing procedures for a mortgage, particularly when dealing with an adjustable-rate mortgage (ARM) and factors that can change the closing and interest rates. Specifically, the question mentions the requirement for a new Closing Disclosure if there is any interest rate change of more than 1/8 of a percent.

The issuance of a new Closing Disclosure leads to a mandatory new three-day waiting period before the closing of the mortgage can occur. Furthermore, the mention of inflation and its effect on the real interest rate indicates a situation where the mortgage's adjustable rate should align with inflation changes to maintain the initial real interest rate agreed upon.