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If there is a significant variance in the Annual Percentage Rate (APR) prior to the consummation of a loan, a corrected disclosure must be provided at least 3 business days before consummation. This requirement stems from the Truth in Lending Act (TILA), which mandates that lenders disclose the terms and costs of a mortgage clearly and accurately.

When a significant change in the APR occurs, it indicates that the loan terms have changed in such a way that the borrower may not be adequately informed about the true cost of borrowing. By providing a corrected disclosure, the lender ensures that the borrower has the most up-to-date information regarding their loan, allowing them to make an informed decision. The 3-business-day period is also intended to give borrowers time to review the new terms thoroughly before they finalize the loan agreement.

This requirement protects borrowers by ensuring they are not caught off guard by last-minute changes in loan costs, which could affect their financial situation and loan affordability. Thus, providing the corrected disclosure within this timeframe reinforces transparency and maintains compliance with regulatory standards.