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Originationmedium27% of exam

An MLO sponsorship update raises a question about changed-circumstance review. Which action should the audit analyst recommend?

Correct Answer

B) Issue a revised Loan Estimate within three business days when valid

Changed circumstances can permit revised estimates only when Regulation Z conditions and timing are met. The best answer is "Issue a revised Loan Estimate within three business days when valid".

Answer Options
A
Redisclose only after consummation because the file already has a Closing Disclosure.
B
Issue a revised Loan Estimate within three business days when valid
C
Use a revised disclosure to reset tolerances without a documented event.
D
Assume the TILA Loan Estimate Revisions condition is met because the borrower satisfied the separate secondary-market delivery requirement.

Why This Is the Correct Answer

Changed circumstances can permit revised estimates only when Regulation Z conditions and timing are met. The best answer is "Issue a revised Loan Estimate within three business days when valid".

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