Federal Mortgage LawsQuestion 3 of 400
Three business days before closing, the borrower's annual percentage rate (APR) increases from 6.0% to 6.3% because the interest rate was locked higher. Under TRID, what must the lender do?
a.Nothing; APR changes are always allowed at closing
b.Provide a revised Loan Estimate only
c.Proceed to close as scheduled with no delay
d.Provide a corrected Closing Disclosure and observe a new 3-business-day waiting period
Explanation
An APR increase beyond the tolerance (more than 1/8% for fixed-rate loans) is one of three changes that trigger a new corrected Closing Disclosure and a fresh 3-business-day waiting period. A change to a prepayment penalty or a change in loan product also triggers redisclosure. Minor changes generally do not restart the clock, but this APR change does.
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