A property appraisal reveals the value is $50,000 less than the borrower's estimated value provided at application. The loan-to-value ratio changes from 80% to 85%, requiring mortgage insurance. This constitutes:
Correct Answer
B) Information specific to the transaction that was unknown
Under 12 CFR 1026.19(e)(3)(iv)(B), information specific to the transaction that was unknown to the creditor at the time of the Loan Estimate constitutes a changed circumstance. The actual appraised value falls under this category as transaction-specific information.
Why This Is the Correct Answer
Under 12 CFR 1026.19(e)(3)(iv)(B), information specific to the transaction that was unknown to the creditor at the time of the Loan Estimate constitutes a changed circumstance. The actual appraised value falls under this category as transaction-specific information.
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