During the loan origination process, a borrower's credit score drops from 740 to 680 due to a new credit inquiry, but this change occurs after the Closing Disclosure has been provided and before closing. What documentation requirement applies?
Correct Answer
B) No additional documentation is required since terms haven't changed
Under TRID (12 CFR 1026.19(f)), a revised Closing Disclosure is only required if there are changes to the APR, loan product, or addition of a prepayment penalty. A credit score change alone, without affecting loan terms, does not trigger a new Closing Disclosure requirement, though the lender may choose to re-verify creditworthiness.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(f)), a revised Closing Disclosure is only required if there are changes to the APR, loan product, or addition of a prepayment penalty. A credit score change alone, without affecting loan terms, does not trigger a new Closing Disclosure requirement, though the lender may choose to re-verify creditworthiness.
More Origination Questions
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