A borrower receives a Loan Estimate on Friday at 3 PM via email. The following Wednesday, they discover the property needs a specialized environmental assessment costing $800, which was not disclosed on the LE. What is the earliest the lender can collect this fee?
Correct Answer
B) After providing a revised LE and waiting 3 business days
When a changed circumstance requires additional fees not originally disclosed, the lender must issue a revised Loan Estimate and wait 3 business days before collecting the fee, allowing the borrower time to review the changes and decide whether to proceed.
Why This Is the Correct Answer
When a changed circumstance requires additional fees not originally disclosed, the lender must issue a revised Loan Estimate and wait 3 business days before collecting the fee, allowing the borrower time to review the changes and decide whether to proceed.
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During the loan origination process, a borrower's credit score drops from 740 to 680 due to a new credit inquiry, but this change occurs after the Closing Disclosure has been provided and before closing. What documentation requirement applies?
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