A lender discovers that the property taxes were significantly underestimated on the original Loan Estimate, resulting in a $150 monthly payment increase. What action must the lender take?
Correct Answer
B) Provide a revised Loan Estimate within 3 business days of discovery
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a creditor discovers changed circumstances that affect the accuracy of the Loan Estimate, they must provide a revised Loan Estimate within 3 business days of discovery. Significantly underestimated property taxes constitute a changed circumstance.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a creditor discovers changed circumstances that affect the accuracy of the Loan Estimate, they must provide a revised Loan Estimate within 3 business days of discovery. Significantly underestimated property taxes constitute a changed circumstance.
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A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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