During final underwriting review, a lender discovers the borrower's debt-to-income ratio was miscalculated, requiring additional reserves. This necessitates the borrower to bring an extra $5,000 to closing. How should this be handled under TRID?
Correct Answer
A) Provide a corrected Closing Disclosure showing the additional cash requirement
Additional cash requirements due to underwriting conditions constitute a changed circumstance requiring a corrected Closing Disclosure. The borrower must receive this corrected disclosure at least 3 business days before closing to understand the new cash requirement.
Why This Is the Correct Answer
Additional cash requirements due to underwriting conditions constitute a changed circumstance requiring a corrected Closing Disclosure. The borrower must receive this corrected disclosure at least 3 business days before closing to understand the new cash requirement.
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