A borrower receives a Loan Estimate showing a $400 appraisal fee. The lender later discovers the property requires a more complex appraisal costing $600. What must the lender do?
Correct Answer
B) Provide a revised Loan Estimate due to changed circumstance
When information about the property reveals that a different type of appraisal or additional inspection is needed, this constitutes a changed circumstance. The lender must provide a revised Loan Estimate reflecting the new appraisal requirements and costs.
Why This Is the Correct Answer
When information about the property reveals that a different type of appraisal or additional inspection is needed, this constitutes a changed circumstance. The lender must provide a revised Loan Estimate reflecting the new appraisal requirements and costs.
More Origination Questions
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During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
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