When does loan consummation typically occur?

Loan consummation typically occurs at closing. This is the point in the mortgage process where all necessary documentation is executed, and the loan agreement is finalized. It is during this closing meeting that the borrower reviews and signs legal documents, including the promissory note and mortgage, which solidify their obligation to repay the loan. The disbursement of loan funds usually happens shortly after this, marking the official completion of the transaction.

This definition aligns with the legal interpretation of consummation, which denotes the moment when a borrower becomes legally bound to the loan terms. Thus, identifying closing as the consummation moment is consistent with the practices outlined in the SAFE Act, ensuring clarity in the loan process for both borrowers and lenders.