CFPB Updates TRID Rule FAQs to Address Providing a Loan Estimate to Consumers | JD Supra (2024)

FAQs

Under what circ*mstances is a creditor permitted to provide a consumer with an updated loan estimate? ›

Common reasons you may receive a revised Loan Estimate include: The home was appraised at less than the sales price. Your lender could not document your overtime, bonus, or other irregular income. You decided to get a different kind of loan or change your down payment amount.

All lenders must provide a loan estimate within three days of receiving a completed loan application. Lenders who don't follow this requirement can be subject to regulatory action and fines.

The Loan Estimate tells you important details about the loan you have requested. The lender must provide you a Loan Estimate within three business days of receiving your application.

Quick Loan Estimate delivery: A lender must issue a Loan Estimate within 3 days of receiving your mortgage application. Borrowers use the Loan Estimate to review a loan's terms and costs and ask the loan originator any additional questions.

Common reasons you may receive a revised Loan Estimate include: The home was appraised at less than the sales price. Your lender could not document your overtime, bonus, or other irregular income. You decided to get a different kind of loan or change your down payment amount.

Once you've submitted your six key pieces of information, each lender is required to send you a Loan Estimate within three business days. Allow a few extra days for mail delivery if the lender is using postal mail. If you haven't received a Loan Estimate within that timeframe, call the lender and ask why.

If there is more than one consumer the Loan Estimate may be provided to any consumer who is primarily liable on the obligation. If one consumer is merely a surety or guarantor then the Loan Estimate must be given to the principal debtor.

You do not need to have a signed purchase contract in order to apply for a mortgage loan and receive a Loan Estimate.

The creditor must ensure that the consumer receives the revised Loan Estimate no later than four business days prior to consummation.

Which of the following may be collected from the consumer prior to issuing a loan estimate? ›

The only fee a lender can ask you to pay prior to providing a Loan Estimate is a fee for obtaining your credit report.

What is the TRID rule? The TRID rule requires lenders to provide two disclosure documents to lenders: a loan estimate and a closing disclosure. Because each document must be timed to give the borrower three days to look it over, it's sometimes referred to as the “three-day rule.”

As you begin the mortgage process, lenders are required to deliver a Loan Estimate to you within three days of your loan application.

The Loan Estimate replaced the RESPA Good Faith Estimate (GFE) and the early Truth in Lending disclosure. The rule requires creditors to deliver or place in the mail the Loan Estimate no later than three business days after the consumer submits a loan application.

Once the six pieces of information are received the loan estimate must be delivered within 3 business days of receiving the application. If the consumer withdraws the application within that period, the creditor does not have to provide the Loan Estimate.

A revised Loan Estimate must be provided within 3 business days of receiving information sufficient to establish a changed circ*mstance.

Section 1026.19(e)(4)(ii) imposes timing restrictions on the provision of revised Loan Estimates. Specifically, § 1026.19(e)(4)(ii) states that the creditor shall not provide a revised Loan Estimate on or after the date on which the creditor provides the Closing Disclosure.

When mortgage terms change, revised loan estimates must be provided to borrowers three business days before the revised closing date. It is essential to use loan origination software to meet revised loan estimate requirements quickly. Lenders may incur penalties if revised loan estimates are not sent when required.