A borrower's loan amount increases from $400,000 to $425,000 due to additional loan costs discovered during underwriting. The original Closing Disclosure was provided 5 business days before the scheduled closing. What action must the lender take?
Correct Answer
B) Provide a corrected Closing Disclosure and wait 3 business days before closing
Under TRID, an increase in loan amount constitutes a changed circumstance requiring a corrected Closing Disclosure. The borrower must receive the corrected disclosure at least 3 business days before consummation, regardless of when the original was provided.
Why This Is the Correct Answer
Under TRID, an increase in loan amount constitutes a changed circumstance requiring a corrected Closing Disclosure. The borrower must receive the corrected disclosure at least 3 business days before consummation, regardless of when the original was provided.
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A borrower receives a Loan Estimate on Wednesday and wants to proceed with the loan. Under TRID, what is the earliest date the borrower can close on the loan?
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