A borrower requests to add their spouse to the loan application 8 days after receiving the initial Loan Estimate. This change affects the debt-to-income ratio and loan pricing. What is required?
Correct Answer
B) Issue a revised Loan Estimate within 3 business days of the borrower's request
Adding a borrower to the application constitutes a changed circumstance under 12 CFR 1026.19(e)(3)(iv)(A) as it affects the borrower's creditworthiness and loan terms. The lender must provide a revised Loan Estimate within 3 business days of receiving the request and sufficient information about the additional borrower.
Why This Is the Correct Answer
Adding a borrower to the application constitutes a changed circumstance under 12 CFR 1026.19(e)(3)(iv)(A) as it affects the borrower's creditworthiness and loan terms. The lender must provide a revised Loan Estimate within 3 business days of receiving the request and sufficient information about the additional borrower.
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