A changed circumstance occurs after the Loan Estimate is issued—the property appraisal comes in lower than expected. The lender needs to change the loan terms. Under TRID, what may the lender do?
Correct Answer
D) Issue a revised Loan Estimate reflecting the changed terms within three business days of learning about the changed circumstance
When a valid changed circumstance occurs (such as a lower-than-expected appraisal), the lender may issue a revised Loan Estimate within three business days of learning about the change. The revised estimate resets certain tolerance baselines.
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