A borrower requests to add a co-borrower 10 days before closing. The original Closing Disclosure was provided 5 days ago. What documentation action is required?
Correct Answer
B) Provide a revised Closing Disclosure and wait 3 business days before closing
Adding a co-borrower constitutes a changed circumstance under TRID (12 CFR 1026.19(f)(2)). This requires issuing a revised Closing Disclosure, and if this is the first revised CD or if it contains certain changes, there must be a 3-business-day waiting period before closing to allow the borrower to review the changes.
Why This Is the Correct Answer
Adding a co-borrower constitutes a changed circumstance under TRID (12 CFR 1026.19(f)(2)). This requires issuing a revised Closing Disclosure, and if this is the first revised CD or if it contains certain changes, there must be a 3-business-day waiting period before closing to allow the borrower to review the changes.
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DU returns a finding that includes the condition 'Verify Previous Mortgage Payment History.' The borrower sold their previous home six months ago and provides a HUD-1 showing the payoff. DU still requires the payment history verification. Why might this be necessary?