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#2014032 - 05/14/15 01:35 PM change of circumstance clarification
mdog76 Offline
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Joined: Jan 2007
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Looking for clarification on this to be sure. When corrected early docs are generated, can the loan close on the third day or after midnight of the third day?

Thank you.

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Lending Compliance
#2014060 - 05/14/15 02:58 PM Re: change of circumstance clarification mdog76
swiggles Offline
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For GFE changed circumstance, there is no required wait time to close. But if the GFE changed circumstance causes the TIL APR to be out of tolerance, then 3-day (or 6-day, if mailed) wait is required. There is no midnight rule like there is for the right of recission. The day after the TIL is provided is day 1. You can close on day 3.

A GFE changed circumstance doesn't necessarily cause a TIL re-disclosure. A TIL re-disclosure is only required if the APR is out of tolerance. So sometimes, you can avoid waiting if only the GFE has to be re-disclosed due to a changed circumstance.
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#2014077 - 05/14/15 03:26 PM Re: change of circumstance clarification mdog76
mdog76 Offline
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Posts: 645
Tied to this topic: If there is a change in circumstance form, and new GFE when the contract sales price changed, but it appears that nothing related to loan actually changed, is that a problem?
Last edited by mdog76; 05/14/15 03:26 PM.
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#2014085 - 05/14/15 03:45 PM Re: change of circumstance clarification mdog76
Truffle Royale Offline

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First: define 'problem'
Second: the contract sales price is not a valid changed circumstance allowing you to change the GFE.
Now, if changing the sales price changed the loan amount, THEN you have a valid CC and can (but don't have to) redisclose to capture any fee changes directly affected by the loan amount change.

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#2014090 - 05/14/15 04:01 PM Re: change of circumstance clarification mdog76
mdog76 Offline
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Posts: 645
By problem I guess I mean would an unneeded new GFE be a violation from an examiner?

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#2014098 - 05/14/15 04:23 PM Re: change of circumstance clarification mdog76
Truffle Royale Offline

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You cannot use the redisclosure because you didn't have a valid changed circumstance to issue it. You must use the numbers from the previous (original?) GFE on page 3 in the comparison chart.

Whether it will be viewed as a violation is something only your examiner can answer. If it's a one time occurrence, probably not. It's pattern and practices that they don't like.

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#2014105 - 05/14/15 04:38 PM Re: change of circumstance clarification mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
This is a one time issue. Think the officer just thought he had to.

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