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#2107473 - 11/15/16 10:10 PM Valid Change of CIrcumstance?
ScoutLaRue Offline
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Joined: Jul 2016
Posts: 73
Still a newbie when it comes to TRID! I would like your input on this scenario BOL...

App rcvd: 10/03
LE sent 10/03
Counteroffer & revised LE sent 10/14 with Change of Circumstance noting that due to credit score/loan policy rate will be higher than on initial LE...

Am I correct in saying we did not receive new information for a valid change of circumstance on 10/14 ...we had the credit score with the app and should have reviewed and disclosed that rate then?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2107475 - 11/15/16 10:12 PM Re: Valid Change of CIrcumstance? ScoutLaRue
rlcarey Online
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rlcarey
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Posts: 79,893
Galveston, TX
Am I correct in saying we did not receive new information for a valid change of circumstance on 10/14 ...we had the credit score with the app and should have reviewed and disclosed that rate then?

Yes. But unless the rate was locked - you are free to change the rate at any time as long as no fees changed.
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#2109334 - 12/01/16 06:57 PM Re: Valid Change of CIrcumstance? ScoutLaRue
Vive Accommodare Offline
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Just to add on, what if the rate was locked and information was discovered to be withheld? Would we be able to send a revised loan estimate with the higher rate due to this change of circumstance?
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#2109342 - 12/01/16 07:13 PM Re: Valid Change of CIrcumstance? ScoutLaRue
rlcarey Online
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rlcarey
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Galveston, TX
Depends on your written rate lock agreement. Under what conditions can you break that agreement?

Even still, if no changes occur in the interest dependent charges due to the change, there is no requirement to re-issue an LE other than for informational purposes.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2109364 - 12/01/16 08:57 PM Re: Valid Change of CIrcumstance? ScoutLaRue
Vive Accommodare Offline
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We simply have a CA rate lock agreement that goes over the fees and the loan details, but nothing noting the circumstance to which we could break the agreement.
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#2109375 - 12/01/16 09:47 PM Re: Valid Change of CIrcumstance? ScoutLaRue
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,893
Galveston, TX
Then you probably would need to sit down with legal counsel to figure out what your options might be in that situation.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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