A borrower receives a Loan Estimate on Monday and immediately requests changes to the loan terms. The lender provides a revised Loan Estimate on Wednesday. What is the earliest date the borrower can legally consummate the loan?
Correct Answer
B) The following Wednesday (7 business days after the revised estimate)
Under TILA Section 1026.19(e), when a revised Loan Estimate is provided due to changed circumstances, a new 7-business-day waiting period begins from receipt of the revised disclosure before consummation can occur.
Why This Is the Correct Answer
Under TILA Section 1026.19(e), when a revised Loan Estimate is provided due to changed circumstances, a new 7-business-day waiting period begins from receipt of the revised disclosure before consummation can occur.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A Currency Transaction Report (CTR) must be filed when a customer conducts a cash transaction that:
Next Question
A lender receives an SCRA interest rate reduction request from a servicemember 18 months after the servicemember was discharged from active duty. The mortgage was originated before active duty began. How should the lender respond?