A borrower receives a revised Loan Estimate on Tuesday due to a changed circumstance. They want to proceed but request that closing occur on the following Monday. Under TRID, the earliest possible closing date is:
Correct Answer
B) Tuesday of the following week
Under 12 CFR 1026.19(f)(1)(iii), when a revised Loan Estimate is provided, the borrower must receive the Closing Disclosure at least 3 business days before closing. Additionally, there must be a 4-business-day waiting period between the revised Loan Estimate and closing, making Tuesday the earliest possible closing date.
Why This Is the Correct Answer
Under 12 CFR 1026.19(f)(1)(iii), when a revised Loan Estimate is provided, the borrower must receive the Closing Disclosure at least 3 business days before closing. Additionally, there must be a 4-business-day waiting period between the revised Loan Estimate and closing, making Tuesday the earliest possible closing date.
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A borrower's credit score drops from 740 to 680 between the Loan Estimate and underwriting due to a new credit inquiry. This change moves them from a 3.5% rate to a 4.0% rate. The lender wants to issue a revised Loan Estimate. Which statement is correct?