What triggers a revised loan estimate? (2024)

What triggers a revised 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.

Under which of these conditions can a loan estimate be revised?

[CORRECT] Explain: A creditor may provide and use a revised Loan Estimate if a changed circ*mstance affected the consumer's creditworthiness or the value of the security for the loan, and resulted in the consumer being ineligible for an estimated loan term previously disclosed.

When can a creditor issue a revised loan estimate?

A revised Loan Estimate must be provided within 3 business days of receiving information sufficient to establish a changed circ*mstance. When the rate is locked a creditor must provide a revised version of the Loan Estimate within 3 business days after the locking of the interest rate.

What are the conditions and deadlines for delivering a revised loan estimate?

Revised loan estimate timing

The TRID rule requires that the revised loan estimate be provided within three business days of receiving information supporting the need to revise. “Business day” is defined as any day the lender's offices are open for substantially all business functions.

What necessitates a revised closing disclosure?

A revised Closing Disclosure may be delivered at or before consummation reflecting any changed terms, unless: The disclosed APR becomes inaccurate. The Loan Product changes – prior Closing Disclosure becomes inaccurate. A Prepayment penalty is added.

When must a revised loan estimate be sent to a borrower within?

No later than three business days after the date the interest rate is locked, the creditor shall provide a revised version of the disclosures required under paragraph (e)(1)(i) of this section to the consumer with the revised interest rate, the points disclosed pursuant to § 1026.37(f)(1), lender credits, and any other ...

What qualifies as a valid change of circ*mstance?

“Changed circ*mstance” is a term defined in Regulation Z to include three scenarios: (1) an extraordinary event beyond any party's control, such as a natural disaster; (2) when the lender relied on specific information to complete the disclosure and that information later becomes inaccurate or changes after the ...

Does a revised loan estimate need to be signed?

Finally, the revised closing costs must be signed and dated by both the borrower and the lender. This process is known as a loan estimate comparison. It is an essential step in protecting borrowers from being overcharged for their mortgage transactions.

Does a lender have to honor a loan estimate?

Once issued, the terms of the loan estimate are good for 10 days. As long as there aren't any major changes to your application or financial situation, your lender has to honor the estimate if you begin the process of securing the loan within that time frame.

What is the 7 day rule for loan estimate?

Under the TRID rule, credit unions generally must provide the Loan Estimate to consumers no later than seven business days before consummation. Members must receive the Closing Disclosure no later than three business days before consummation.

Can a revised loan estimate be issued after a closing disclosure is sent to the borrower?

Sometimes loan terms or fees change before closing, but after the lender has provided the Closing Disclosure (CD) to the borrower. Lenders should be aware that the TRID rules do not permit a revised Loan Estimate (LE) to be provided after the CD has been provided.

What fees Cannot change on a loan estimate?

Costs that cannot increase at all

If there is a “change in circ*mstances,” these costs can change by any amount, but otherwise they cannot change at all: Fees paid to the lender, mortgage broker, or an affiliate of either the lender or mortgage broker for a required service.

Under which of the following circ*mstances is a creditor prohibited from issuing a revised loan estimate?

A creditor may not provide a revised Loan Estimate after it issues a Closing Disclosure even if the interest rate is locked on or after the date the Closing Disclosure is provided to the consumer.

When must a revised closing disclosure be issued?

Section 1026.19(f)(2)(i) requires/permits creditors to provide corrected closing disclosures if the originals become inaccurate before consummation. Except as provided under section 1026.19(f)(2)(ii), the corrected disclosures can be provided at any time up to and at consummation.

What would trigger issuing a new closing disclosure document?

If you modify the amount of your down payment. If you change the loan product. If the home you're buying appraises at a value different than expected. If there's a change in your credit or the lender cannot verify income.

Is a loan estimate final?

A Loan Estimate isn't an indication that your loan application has been approved or denied. You don't need to have a signed contract for the property that you're receiving a Loan Estimate for. You're not obligated to pay an application fee other than a reasonable fee for the lender to run a credit report.

Can you may deliver a revised loan estimate disclosure on or after the date on which you deliver a closing disclosure?

1. The timing requirements for a revised loan estimate are complicated. You will find them in 1026.19(e)(4)(ii). A revised loan estimate cannot be provided on or after the date on which you provide a closing disclosure for the loan.

Is a loan estimate binding?

While the loan estimate is not a binding agreement, it should provide an accurate picture of the loan terms your lender intends to offer if you decide to move forward with them.

What is the 3 day disclosure rule for loan estimate?

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.”

Which of the following would not be considered a changed circ*mstance?

Changed circ*mstances do not include the borrower's name, the borrower's monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information ...

How accurate is loan estimate?

You want accurate figures. At Homebuyer and plenty of other lenders, these costs get estimated as close to 100 percent accurate as possible. Remember that numbers are never exact upfront. Don't worry about any estimated fees that your lender doesn't dictate.

How long will the issuance of a revised loan estimate delay the closing?

Answer: b) When a revised Loan Estimate is issued, the closing may not occur for at least four precise business days after the consumer receives it.

How many days before consummation must a borrower receive a revised loan estimate?

Revised Loan Estimates generally can be provided no later than four business days before consummation.

When a creditor revises a loan estimate it must deliver the revised disclosure to the loan applicant?

When a creditor revises a Loan Estimate, it must deliver the revised disclosure to the loan applicant: no later than four business days prior to consummation.

How many days does a lender have to provide a loan estimate?

When do you get a loan estimate? All lenders must provide a loan estimate within three days of receiving a completed loan application.