Origination ActivitiesQuestion 224 of 400
The borrower asks to switch from a 30-year to a 15-year loan after the initial LE, changing several costs. The creditor may:
a.Not issue any revised LE
b.Only issue a revised CD
c.Issue a revised Loan Estimate reflecting the borrower-requested change within three business days
d.Charge whatever fees it wants with no re-disclosure
Explanation
A borrower-requested change to the loan terms is a valid reason to issue a revised Loan Estimate. The creditor must provide the revised LE within three business days of receiving the request, and it may reset tolerances for the affected charges.
Law Reference: TRIDPractice all 400 questions free — no signup required.
Related questions on this topic
- 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:
- A creditor may use a revised Loan Estimate to reset a tolerance baseline only when:
- A revised Loan Estimate may NOT be provided:
- Amounts placed into an escrow, impound, or reserve account are subject to which tolerance?
- Premiums for homeowners (hazard) insurance disclosed on the LE are subject to which tolerance?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review