Which of the following constitutes a valid changed circumstance under TRID that would allow fee increases?
Correct Answer
C) A natural disaster damages the property before closing
Under TRID (12 CFR 1026.19(e)(3)(iv)), a natural disaster that damages the property would constitute a changed circumstance that was beyond the creditor's control. Lender errors, market changes, and borrower shopping do not qualify as valid changed circumstances.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(e)(3)(iv)), a natural disaster that damages the property would constitute a changed circumstance that was beyond the creditor's control. Lender errors, market changes, and borrower shopping do not qualify as valid changed circumstances.
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