According to the TILA-RESPA Integrated Disclosure rule (TRID), changed circumstances that may result in a revised Loan Estimate include which of the following situations?
A.
Market fluctuations on a locked loan
B.
The borrower receiving a salary increase
C.
A natural disaster in the area where the loan will close
D.
Changes that the MLO should have known at the time the Loan Estimate was provided
Under TRID, a revised Loan Estimate (LE) can be issued if there is a changed circumstance that affects the loan terms or costs. This can include situations such as a natural disaster in the area where the loan will close, which may impact the value of the property or loan costs. Such changes are considered beyond the control of the parties involved and justify a revised estimate.
Market fluctuations (A) on a locked loan and borrower salary increases (B) are not valid reasons for issuing a revised LE.
Changes that the MLO should have known at the time of the original LE (D) do not qualify as a valid changed circumstance.
References:
TRID Rule, 12 CFR ยง1026.19(e)
CFPB Guidelines on changed circumstances for Loan Estimates
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