Origination ActivitiesQuestion 220 of 400
For purposes of triggering an application, the 'estimated value of the property' may be based on:
a.Only a completed formal appraisal
b.Only the tax-assessed value
c.The consumer's own estimate or the purchase price stated in a sales contract
d.The creditor's automated valuation only, never the consumer's
Explanation
The 'estimate of the value of the property' among the six pieces can be based on the consumer's own estimate or the purchase price in the sales contract; a formal appraisal is not required to trigger an application. This is one of the six items that starts the LE clock.
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Related questions on this topic
- If a charge exceeds the applicable tolerance at closing, the creditor generally must:
- Charges on the Loan Estimate are deemed made in 'good faith' if:
- 'Services the consumer can shop for' are those for which:
- Before the consumer receives the Loan Estimate, if the creditor provides a written estimate of terms or costs, it must:
- A borrower gives the loan officer their name, monthly income, SSN, the loan amount they want, and an estimate of the home's value, but has not yet identified a specific property address. Under TRID:
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