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Must We Redisclose if Loan Amount Changes?
by Dan Persfull, BOL Guru
Guru BIOS
Question: Once a GFE and preliminary disclosure has been given, is it necessary to redisclose if the dollar amount changes at some course of the loan process. I'm new in the compliance area and in reviewing loan files I find a number of loans where the dollar figure has changed and we have gone back in and redisclosed the loan amount. Is this necessary? Say we disclosed on a $100,000 and now 2 weeks later that figure has changed to $110,000.
Answer: No, this is not a regulatory requirement. However, it is a good practice should the loan amount change significantly and increasing the closing costs. This helps avoid "closing shock" for your customer.
First published on BankersOnline.com 10/03/05
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