A lender issues a Loan Estimate on Monday. On Wednesday, the borrower emails expressing intent to proceed. On Thursday, the property appraisal comes in $20,000 lower than expected, requiring a loan amount reduction. When must a revised Loan Estimate be provided if one is issued?
Correct Answer
A) Within 3 business days of the appraisal (by Tuesday)
When a revised Loan Estimate is issued due to changed circumstances after the borrower's intent to proceed, it must be provided within 3 business days of receiving information sufficient to establish the changed circumstance - in this case, the appraisal results.
Why This Is the Correct Answer
When a revised Loan Estimate is issued due to changed circumstances after the borrower's intent to proceed, it must be provided within 3 business days of receiving information sufficient to establish the changed circumstance - in this case, the appraisal results.
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