A lender discovers that the actual title insurance cost is $50 higher than disclosed on the Loan Estimate due to a rate increase that occurred 2 days after the LE was issued but before the borrower's intent to proceed. The borrower has not yet signed the intent to proceed. What action should the lender take?
Correct Answer
A) Issue a revised Loan Estimate reflecting the new title insurance cost
Under TRID rules, when a lender becomes aware of changed circumstances that affect the accuracy of the Loan Estimate before the borrower's intent to proceed, they should issue a revised LE. The timing of when the rate change occurred is less important than when the lender became aware of it.
Why This Is the Correct Answer
Under TRID rules, when a lender becomes aware of changed circumstances that affect the accuracy of the Loan Estimate before the borrower's intent to proceed, they should issue a revised LE. The timing of when the rate change occurred is less important than when the lender became aware of it.
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