An MLO discovers that the APR on the Closing Disclosure has increased by 0.15% from the Loan Estimate for a fixed-rate loan. What action is required?
Correct Answer
B) Provide a corrected Closing Disclosure and restart the 3-day waiting period
Under 12 CFR 1026.19(f), if the APR increases by more than 1/8 percentage point (0.125%) from the Loan Estimate, a corrected Closing Disclosure must be provided and the 3-business day waiting period must restart.
Why This Is the Correct Answer
Under 12 CFR 1026.19(f), if the APR increases by more than 1/8 percentage point (0.125%) from the Loan Estimate, a corrected Closing Disclosure must be provided and the 3-business day waiting period must restart.
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An appraiser contacts an MLO directly to clarify property details after discovering the address on the appraisal order doesn't match the legal description. This communication is: