A borrower's homeowners insurance premium increases by $300 annually after the Closing Disclosure was issued, discovered during the final insurance verification. This change affects the monthly payment by $25. What action is required?
Correct Answer
B) Provide corrected Closing Disclosure due to monthly payment change
While homeowners insurance premiums are not subject to tolerance limits, the change affects the monthly payment calculation shown on the Closing Disclosure. Any change to the monthly payment requires a corrected Closing Disclosure.
Why This Is the Correct Answer
While homeowners insurance premiums are not subject to tolerance limits, the change affects the monthly payment calculation shown on the Closing Disclosure. Any change to the monthly payment requires a corrected Closing Disclosure.
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A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
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