A borrower requests to add their spouse as a co-borrower 5 days after receiving the initial Loan Estimate. This change affects the loan terms and pricing. This scenario:
Correct Answer
B) Constitutes a changed circumstance allowing a revised Loan Estimate
Under 12 CFR 1026.19(e)(3)(iv)(A), adding a co-borrower represents information specific to the borrower that has changed after the Loan Estimate was provided, constituting a valid changed circumstance that permits a revised Loan Estimate.
Why This Is the Correct Answer
Under 12 CFR 1026.19(e)(3)(iv)(A), adding a co-borrower represents information specific to the borrower that has changed after the Loan Estimate was provided, constituting a valid changed circumstance that permits a revised Loan Estimate.
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An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
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