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#2188646 - 08/09/18 05:01 PM Expiration of LE
Likes to Comply Offline
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Registered: 11/07/08
Posts: 727
Loc: In the mountains
I'm reading over the rules at 1026.19(e)(3)(iv)(E) for Expiration of the Loan Estimate and the ability to orally or in writing extend the expiration. Honestly, I'm having a hard time deciding if we need a procedure for this. I can only think of one time we had a situation where we were past the expiration date when we received intent to proceed and we utilized this rule to correct something on the LE. Otherwise we've just had a practice of honoring the LE we provided because it was still accurate. Do we actually need to start informing customers that we are extending the expiration of the LE and documenting that information? Or can we continue the way we were before...honoring the LE unless we needed to take advantage of the Expiration rule to reset tolerances with no formal process for orally or in writing extending the expiration date?

Thanks in advance.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2188651 - 08/09/18 05:23 PM Re: Expiration of LE [Re: Likes to Comply]
rlcarey Offline
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Registered: 07/16/01
Posts: 67324
Loc: Galveston, TX
Thee is nothing that requires that you officially document an extension. You are always free to honor it for a longer period of time. You are only required to document when you don't honor it longer and change the fees:

§ 1026.19(e) and § 1026.25 require the creditor to document that a new disclosure was provided under § 1026.19(e)(3)(iv)(E) but do not require the creditor to document a reason for the increase in the underwriting fee.
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#2188670 - 08/10/18 08:34 AM Re: Expiration of LE [Re: Likes to Comply]
Likes to Comply Offline
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Registered: 11/07/08
Posts: 727
Loc: In the mountains
Thank you.

Follow-up question regarding...

19(e)(3)(iv)(E) - For example, assume a creditor includes a $500 underwriting fee on the disclosures (LE) provided and the creditor delivers those disclosures on a Monday. If the consumer indicates intent to proceed 11 business days later, the creditor may provide new disclosures with a $700 underwriting fee. In this example, the creditor is required (record retention rules and revised estimate rules) to document that a new disclosure was provided under the Expiration rule but do not require the creditor to document a reason for the increase in the underwriting fee.

If the intent to proceed is received after the expiration date of the LE, is there a limit to how long after the intent to proceed is received that redisclosure of the LE can be made under the Expiration rule?
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#2188672 - 08/10/18 08:43 AM Re: Expiration of LE [Re: Likes to Comply]
rlcarey Offline
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Registered: 07/16/01
Posts: 67324
Loc: Galveston, TX
Within three business days of receiving the intent to proceed. Expiration is covered in (e)(3)(iv(E).

(4) Provision and receipt of revised disclosures.

(i) General rule. Subject to the requirements of paragraph (e)(4)(ii) of this section, if a creditor uses a revised estimate pursuant to paragraph (e)(3)(iv) of this section for the purpose of determining good faith under paragraphs (e)(3)(i) and (ii) of this section, the creditor shall provide a revised version of the disclosures required under paragraph (e)(1)(i) of this section or the disclosures required under paragraph (f)(1)(i) of this section (including any corrected disclosures provided under paragraph (f)(2)(i) or (ii) of this section) reflecting the revised estimate within three business days of receiving information sufficient to establish that one of the reasons for revision provided under paragraphs (e)(3)(iv)(A) through (F) of this section applies.
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