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#1399656 - 06/04/10 02:58 PM Redisclose a change in loan amount?
Pamlissa Offline
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Joined: Oct 2009
Posts: 115
Rosemont, IL
I have a rate & term refi in Texas that is supposed to close tomorrow. We lowered the loan amount by $4,000 because the pay-off came in lower than we initially thought. No other charges are being changed. Do we need to redisclose and then wait three days to close or can we go on ahead without redisclosing?

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#1399670 - 06/04/10 03:08 PM Re: Redisclose a change in loan amount? Pamlissa
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
There would be no need to issue a revised GFE reflecting the change in the loan amount.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1399672 - 06/04/10 03:09 PM Re: Redisclose a change in loan amount? Dan Persfull
Pamlissa Offline
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Joined: Oct 2009
Posts: 115
Rosemont, IL
Thanks, Dan!

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#1399690 - 06/04/10 03:19 PM Re: Redisclose a change in loan amount? Pamlissa
Web Offline
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Joined: May 2005
Posts: 316
Isn't a revised TIL required since APR will likely be out of tolerance?

We have similar situation b/c appraisal came back less than expected so loan amount is less; is revised GFE applicable then?

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#1399691 - 06/04/10 03:20 PM Re: Redisclose a change in loan amount? Web
Pamlissa Offline
100 Club
Joined: Oct 2009
Posts: 115
Rosemont, IL
APR is not out of tolerance in this case.

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#1399713 - 06/04/10 03:37 PM Re: Redisclose a change in loan amount? Pamlissa
Web Offline
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Joined: May 2005
Posts: 316
If it were though a revised TIL would need to be given right,but not GFE?

I see in RESPA where it talks about what changed circumstances do not include, but I don't really understand what it is saying (unless the information changes or is found to be inaccurate after the GFE has been provided)? Wouldn't the changed amount make it inaccurate? i appreciate your thoughts.

(2) Changed circumstances do not include:
(i) The borrower's name, the borrower's monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or
(ii) Market price fluctuations by themselves.

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#1399726 - 06/04/10 03:57 PM Re: Redisclose a change in loan amount? Web
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
There were no fees affected by the changed loan amount therefore there is no need to issue a revised GFE.

The only time you are mandated to issue a revised GFE is when the consumer initiates a rate lock. Regardless of any other changed circumstance, as long as the lender is willing to live with the fees disclosed on the GFE, they are not required to issue a revised GFE.

Under MDIA you always have to issue a revised ETIL if the APR is out of tolerance, but it and the GFE are not dependent on one another when it comes to the requirements for issuing revised disclosures.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1399732 - 06/04/10 04:00 PM Re: Redisclose a change in loan amount? Dan Persfull
Web Offline
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Joined: May 2005
Posts: 316
Thank you for the clarification.

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#1574324 - 07/06/11 04:33 PM Re: Redisclose a change in loan amount? Web
mcrain Offline
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Joined: Mar 2011
Posts: 3
What if the property tax amount changes?

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#1574326 - 07/06/11 04:37 PM Re: Redisclose a change in loan amount? mcrain
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
What caused the property tax amount to change?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1574360 - 07/06/11 05:20 PM Re: Redisclose a change in loan amount? Dan Persfull
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,355
Property taxes do not go on a GFE nor do they could towards PPFC so a change in property tax amount has no effect on either the GFE or the TIL.

If you're talking Block 9, you cannot change the escrow amounts just because you know the correct tax amount now. That block does not have a tolerance anyway.

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#1577537 - 07/13/11 07:18 PM Re: Redisclose a change in loan amount? Dan Persfull
mcrain Offline
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Joined: Mar 2011
Posts: 3
Appraisal came in at lower amount. No previous tax record because it's a new construction.

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