Which of the following scenarios would NOT qualify as a valid changed circumstance requiring a revised Loan Estimate?
Correct Answer
D) Lender's internal cost for processing increases by $100
Under 12 CFR 1026.19(e)(3)(iv), changed circumstances must be specific events that affect settlement costs or loan terms. Internal cost increases by the lender do not qualify as changed circumstances. Valid changed circumstances include changes affecting the borrower's creditworthiness, loan amount, or property value.
Why This Is the Correct Answer
Under 12 CFR 1026.19(e)(3)(iv), changed circumstances must be specific events that affect settlement costs or loan terms. Internal cost increases by the lender do not qualify as changed circumstances. Valid changed circumstances include changes affecting the borrower's creditworthiness, loan amount, or property value.
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