Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery)

The following information is intended for general information purposes with the goal of assisting Ellie Mae’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.
When must the consumer receive the final revised Loan Estimate?
A consumer must receive a final revised Loan Estimate not later than 4 [specific] business days prior to consummation. A creditor cannot provide a revised Loan Estimate on or after the dat...
Are we supposed to do a final Loan Estimate prior to closing on all loans? Or just for a change of circumstance only?
Creditors must provide the Closing Disclosure which reflects the actual terms of the transaction. Loan Estimate is required to provide the consumer with an estimate of the costs. If there ...
When the rate is locked are we supposed to send a new Loan Estimate the same day or the day after?
When the rate is locked a creditor must provide a revised version of the Loan Estimate within 3 business days after the locking of the interest rate. Citation(s):...
When is a revised Loan Estimate provided to the consumer?
A revised Loan Estimate must be provided within 3 business days of receiving information sufficient to establish a changed circumstance. When the rate is locked a creditor must provide a r...
How should differences between Loan Estimate and Closing Disclosure information be handled? For example, if there is no loan ID number at time of Loan Estimate is it okay to leave it blank then have a loan ID number on the Closing Disclosure?
If the Creditor's Loan ID number is not reasonably available to the mortgage broker it may be left blank. CFPB staff has said this is consistent with official commentary, which states the ...
What if the locked rate is less than the rate disclosed on the application, do you have to give a new Loan Estimate reflecting what the actual rate is even though it is less the application?
Yes. Commentary ¶19(e)(3)(iv)(D) states that when interest rate is not locked when the Loan Estimate is provided, a valid reason for revision exists when the interest rate is subsequently...
Would re-disclosing a Loan Estimate for a re-lock or lock extension need to be done on the same day too?
The creditor must provide a revised Loan Estimate no later than 3 business days after the date the rate is locked. There is no differentiation in the rule for initial rate locking versus a...
So are you saying if a loan interest rate is floating and locks later in the process you MUST re-disclose?
Yes. When the rate is locked a creditor must provide a revised version of the Loan Estimate within 3 business days after the locking of the interest rate. Citatio...
If there are no changes to the Loan Estimate do you still have to send a final "revised" Loan Estimate?
No. If a Loan Estimate is initially issued with a locked interest rate and there is no subsequent change of circumstance prior to delivery of the Closing Disclosure the Regulation does not...
If the fees decrease, do we need to send a revised Loan Estimate?
The rule only identifies requirements regarding a revised Loan Estimate for fee increases exceeding the variances provided in the rule. However, a consumer’s decision to select his or he...
What if no lender credits are decided until the loan closing, does a new Loan Estimate need to be provided to reflect this?
There are a number of items to address with such a question. Let’s take the issues one at a time: 1. The final Loan Estimate must be received by the consumer no ...
If 'points' (origination fee) are being charged that are not discount points and the loan amount changes, can the origination fee change?
No. A change to an origination fee paid to the creditor or mortgage broker falls within the zero tolerance category, since it disclosed as a dollar amount and is not an interest rate depen...
When a loan is re-disclosed all fees are re-disclosed, shouldn’t only the fee(s) associated with the change of circumstance be re-disclosed?
An initial or revised Loan Estimate must be provided in good faith. If a creditor uses a revised Loan Estimate for the purpose of determining good, Regulation Z says the creditor must prov...
If the Lender Credit is associated with the rate and an extension is required, can the lender credit decrease?
Yes. Within three business days of the date the interest rate is locked the creditor must provide a revised version of the disclosure to the consumer with the revised interest rate, the po...
If loan amount changes, then can the lender credits change?
The revised disclosures may reflect increased charges only to the extent that the reason for revision, as identified in §1026.19(e)(3)(iv)(A) through (F), actually increased the particula...
If a loan is locked and then is extended, is a revised Loan Estimate required?
A revised Loan Estimate would not be necessary unless there are changes to interest rate dependent charges. If a rate lock extension fee is being charged, then a revised Loan Estimate woul...
Disclaimer: The above information is intended for general information purposes with the goal of assisting Ellie Mae’s customers in complying with the new KBYO regulations. This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with the KBYO regulations. This FAQ should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the KBYO regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.

CFPB announcement regarding the delay of TRID

The Consumer Financial Protection Bureau is delaying until October 3, 2015, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments. In light of certain procedural requirements under the Congressional Review Act (CRA), the TILA- RESPA Final Rule and the TILA-RESPA Amendments cannot take effect on August 1, 2015, as originally provided by those rules. To comply with the CRA and to help ensure the smooth implementation of the TILA-RESPA Final Rule, the Bureau is extending the effective date of both the TILA-RESPA Final Rule and the TILA-RESPA Amendments beyond the additional minimum period required by the CRA to October 3, 2015, as proposed. The Bureau is also making certain technical amendments to the Official Interpretations of Regulation Z to reflect the new effective date and technical corrections to two provisions of Regulation Z adopted by the TILA-RESPA Final Rule.

The full statement from CFPB Director Richard Cordray can be viewed here

Popular KBYO questions

When do the new disclosures become effective and for which transactions? Part 1: Rule Applicability What happens in October when your final forms are new but initials are old? Part 4: Loan Estimate – Timing & Consumer Receipt For electronic delivery of disclosures, after a borrower agrees to accept electronic delivery in compliance with the ESIGN Act must all disclosures be sent through an ESIGN compliant system, or can a lender email a scanned copy of a document through normal email? Can the borrower return the document by email as an attachment? Part 3: Loan Estimate – Miscellaneous Questions If an application is received prior to October 3, 2015 and a Good Faith Estimate was provided to a consumer should a HUD-1 Settlement Statement and Final TIL Disclosure Statement or a Closing Disclosure be provided to the consumer when the consummation date is on or after October 3, 2015? Part 1: Rule Applicability Do you define “exempt” to mean we are not “allowed” to use the new forms or not “required” to use them? Can we send the new forms on a HELOC for example in lieu of the old? Can we use the new disclosures on all transactions? Part 1: Rule Applicability Can you confirm coops are excluded from the new disclosures since they are not secured by real property? Part 1: Rule Applicability Are transactions with 25 acres and more exempt? Part 1: Rule Applicability When can we start the new disclosures? Part 1: Rule Applicability What if no lender credits are decided until the loan closing, does a new Loan Estimate need to be provided to reflect this? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery) If loan amount changes, then can the lender credits change? Part 9: Revised Loan Estimate – Revisions/Re-Disclosure (including Timing & Delivery)