A borrower receives a Loan Estimate on Wednesday and wants to proceed with the loan. Under TRID, what is the earliest date the borrower can close on the loan?
Correct Answer
A) The following Monday
Under TRID regulations (12 CFR 1026.19(f)(1)(iii)), there must be a 7-business day waiting period between when the Loan Estimate is received and closing. If received on Wednesday, counting 7 business days forward (excluding weekends), the earliest closing would be the following Monday.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(f)(1)(iii)), there must be a 7-business day waiting period between when the Loan Estimate is received and closing. If received on Wednesday, counting 7 business days forward (excluding weekends), the earliest closing would be the following Monday.
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A borrower's loan amount increases from $400,000 to $425,000 due to additional loan costs discovered during underwriting. The original Closing Disclosure was provided 5 business days before the scheduled closing. What action must the lender take?