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#2142741 - 08/18/17 07:52 PM Rate locked box checked in error
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Lender created an LE for the applicant and "accidentally" checked the rate lock box which gave the applicants until the end of the month to accept. The lender left the employ of the bank and another lender was gifted the deal. When he reached out to the applicants (this was two weeks after the initial disclosing) they were very unhappy with the other lender and agreed to work with the current lender. They, however, were unsatisfied with the term and interest that was originally disclosed. The new lender creates a new LE with a new product and rate. However, because the rate was indicated as locked on the original LE, this is a problem correct? Could this be a valid change of circumstance since the borrowers are wanting the changes made, and quite honestly are more favorable than the previous? I can't imagine we are stuck with the original because the rate wasn't truly locked, the applicants never signed a rate lock agreement, and they wanted and received the lower rate.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2142744 - 08/18/17 07:55 PM Re: Rate locked box checked in error Bec
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
You have an uncorrectable disclosure violation on the initial LE. Move on. An LE is not a legal obligation.
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