Which of the following best describes when a lender may NOT issue a revised Loan Estimate for increased settlement costs?
Correct Answer
B) When a valid changed circumstance has not occurred
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), a lender may only issue a revised Loan Estimate to increase settlement costs when a valid changed circumstance has occurred. Without a qualifying changed circumstance, the lender must honor the original estimate within the applicable tolerance thresholds.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), a lender may only issue a revised Loan Estimate to increase settlement costs when a valid changed circumstance has occurred. Without a qualifying changed circumstance, the lender must honor the original estimate within the applicable tolerance thresholds.
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