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?
Correct Answer
A) No action required as this is within tolerance
Under TRID, an APR increase of 0.10% (from 4.25% to 4.35%) is within the 1/8 of one percent (0.125%) tolerance for fixed-rate loans and does not require a new waiting period or additional disclosures.
Why This Is the Correct Answer
Under TRID, an APR increase of 0.10% (from 4.25% to 4.35%) is within the 1/8 of one percent (0.125%) tolerance for fixed-rate loans and does not require a new waiting period or additional disclosures.
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