A borrower-facing employee is unsure what to do when a cost changes after the Closing Disclosure has already been provided. What is the correct response?
Correct Answer
A) Use a corrected Closing Disclosure instead of a revised Loan Estimate
Lines 198-206; 12 CFR 1026.19(e)(4)(ii) and 1026.19(f)(2). Once the Closing Disclosure has been provided, the cure path is through corrected Closing Disclosure rules, not a new revised Loan Estimate. Therefore, the correct response is "Use a corrected Closing Disclosure instead of a revised Loan Estimate".
Why This Is the Correct Answer
Lines 198-206; 12 CFR 1026.19(e)(4)(ii) and 1026.19(f)(2). Once the Closing Disclosure has been provided, the cure path is through corrected Closing Disclosure rules, not a new revised Loan Estimate. Therefore, the correct response is "Use a corrected Closing Disclosure instead of a revised Loan Estimate".
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