A borrower's loan amount increases from $300,000 to $330,000 due to additional requested cash-out, changing the loan from conforming to jumbo. This occurs 6 days after the initial Loan Estimate. The lender:
Correct Answer
C) Can provide a revised Loan Estimate for the changed circumstance
Under 12 CFR 1026.19(e)(3)(iv)(A), the borrower's request for additional cash-out represents information specific to the borrower that has changed, constituting a valid changed circumstance that permits a revised Loan Estimate even when it changes loan product type.
Why This Is the Correct Answer
Under 12 CFR 1026.19(e)(3)(iv)(A), the borrower's request for additional cash-out represents information specific to the borrower that has changed, constituting a valid changed circumstance that permits a revised Loan Estimate even when it changes loan product type.
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