Which statement is correct regarding the tolerance rules when a revised Loan Estimate is issued due to changed circumstances?
Correct Answer
C) The revised Loan Estimate creates a new baseline for all tolerance calculations
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a revised Loan Estimate is properly issued due to a valid changed circumstance, it establishes a new baseline for tolerance calculations. The revised estimate becomes the new comparison point for determining whether actual charges at closing exceed allowable tolerances.
Why This Is the Correct Answer
Under TRID regulations (12 CFR 1026.19(e)(3)(iv)), when a revised Loan Estimate is properly issued due to a valid changed circumstance, it establishes a new baseline for tolerance calculations. The revised estimate becomes the new comparison point for determining whether actual charges at closing exceed allowable tolerances.
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A borrower received a pre-qualification estimate of $250,000 but was only approved for $200,000 during the actual application process. What most likely caused this difference?
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