A lender provides a revised Loan Estimate due to a changed circumstance but fails to include the required changed circumstance disclosure. What is the consequence?
Correct Answer
A) The revised Loan Estimate is invalid and cannot be used
Under 12 CFR 1026.19(e)(3)(iv)(F), a revised Loan Estimate must include a disclosure of the changed circumstance. Without this required disclosure, the revised estimate is invalid and cannot be relied upon to reset tolerance calculations.
Why This Is the Correct Answer
Under 12 CFR 1026.19(e)(3)(iv)(F), a revised Loan Estimate must include a disclosure of the changed circumstance. Without this required disclosure, the revised estimate is invalid and cannot be relied upon to reset tolerance calculations.
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A borrower's loan application shows an estimated property value of $400,000. The appraisal comes back at $375,000, requiring a higher down payment. This occurs 5 days after the original Loan Estimate. What must the lender do?