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
C) 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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