After a Loan Estimate is issued, the consumer requests a change from a 30-year fixed-rate loan to a 15-year fixed-rate loan. May the creditor issue a revised Loan Estimate reflecting the requested change?
Correct Answer
A) Yes, a consumer-requested change can be a permitted reason for revision
Why this is correct: The governing rule under TRID (TILA-RESPA Integrated Disclosure) allows a creditor to issue a revised Loan Estimate for specific, permitted reasons. A consumer-initiated change to the loan product, such as switching from a 30-year to a 15-year fixed-rate loan, is one of those valid reasons. The revised estimate must accurately reflect the new terms and costs. Why the other choices are wrong: The choice "No, a Loan Estimate can never be revised" is wrong because revisions are permitted for certain events like consumer-requested changes, changed circumstances, or interest rate locks. The choice "Only if the appraiser requests it" is wrong because an appraiser's request is not a valid, defined reason for revising a Loan Estimate under the rule. The choice "Only after consummation" is wrong because a Loan Estimate is a pre-consummation disclosure; revising it after the loan closes would be meaningless and non-compliant. Exam tip: Remember the four 'C's that can trigger a valid Loan Estimate revision: Consumer-requested changes, Changed circumstances affecting costs, interest rate lock Choices, and expiration of the original estimate's 10-business-day validity period.
Why This Is the Correct Answer
Why this is correct: The governing rule under TRID (TILA-RESPA Integrated Disclosure) allows a creditor to issue a revised Loan Estimate for specific, permitted reasons. A consumer-initiated change to the loan product, such as switching from a 30-year to a 15-year fixed-rate loan, is one of those valid reasons. The revised estimate must accurately reflect the new terms and costs. Why the other choices are wrong: The choice "No, a Loan Estimate can never be revised" is wrong because revisions are permitted for certain events like consumer-requested changes, changed circumstances, or interest rate locks. The choice "Only if the appraiser requests it" is wrong because an appraiser's request is not a valid, defined reason for revising a Loan Estimate under the rule. The choice "Only after consummation" is wrong because a Loan Estimate is a pre-consummation disclosure; revising it after the loan closes would be meaningless and non-compliant. Exam tip: Remember the four 'C's that can trigger a valid Loan Estimate revision: Consumer-requested changes, Changed circumstances affecting costs, interest rate lock Choices, and expiration of the original estimate's 10-business-day validity period.
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