A lender discloses a $200 tax service fee on the Loan Estimate but later discovers the borrower's property requires a more complex tax monitoring service costing $275. The borrower has already expressed intent to proceed. Which approach is correct?
Correct Answer
B) Issue a revised LE for the changed circumstance and charge the full $275
The discovery that a more complex and expensive service is needed constitutes a changed circumstance. The lender may issue a revised Loan Estimate reflecting the actual cost of the required service, even after the borrower's intent to proceed.
Why This Is the Correct Answer
The discovery that a more complex and expensive service is needed constitutes a changed circumstance. The lender may issue a revised Loan Estimate reflecting the actual cost of the required service, even after the borrower's intent to proceed.
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A borrower's loan application receives an 'Accept' recommendation from Loan Prospector (LP) with specific conditions listed. What must happen next?
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A borrower receives Loan Estimates from three lenders on the same day. Lender A shows $2,800 in origination charges, Lender B shows $1,200, and Lender C shows $3,400. All other terms are similar. What should the MLO advise regarding the comparison?