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A branch manager asks about a loan file because a valid changed circumstance raises a fee before the Closing Disclosure has been issued. What should happen?

Correct Answer

A) Issue a revised Loan Estimate within three business days

Lines 198-203; 12 CFR 1026.19(e)(3)(iv) and 1026.19(e)(4)(i). A valid changed circumstance permits a revised Loan Estimate, but the timing window is still three business days after sufficient information is received. Therefore, the correct response is "Issue a revised Loan Estimate within three business days".

Answer Options
A
Issue a revised Loan Estimate within three business days
B
Treat a rate lock as a changed circumstance for unrelated settlement fees.
C
Ignore redisclosure timing because the borrower verbally accepted the new terms.
D
Increase disclosed costs based on an internal pricing preference without file-specific support.

Why This Is the Correct Answer

Lines 198-203; 12 CFR 1026.19(e)(3)(iv) and 1026.19(e)(4)(i). A valid changed circumstance permits a revised Loan Estimate, but the timing window is still three business days after sufficient information is received. Therefore, the correct response is "Issue a revised Loan Estimate within three business days".

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