A compliance review finds that a valid changed circumstance raises a fee before the Closing Disclosure has been issued. What should the MLO do next?
Correct Answer
B) 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".
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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