A borrower receives a Loan Estimate on Monday. On Thursday, the property appraisal reveals significant foundation issues requiring $15,000 in repairs. When must the lender provide a revised Loan Estimate if this affects the loan terms?
Correct Answer
A) Within 3 business days of receiving the appraisal report
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a changed circumstance occurs that affects settlement costs or loan terms, the lender must provide a revised Loan Estimate within 3 business days of receiving information sufficient to establish that the circumstance has occurred.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a changed circumstance occurs that affects settlement costs or loan terms, the lender must provide a revised Loan Estimate within 3 business days of receiving information sufficient to establish that the circumstance has occurred.
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