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#2191355 - 08/31/18 01:52 PM Changed Circumstance use LE or CD
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We have a changed circumstance. The last day to provide the LE from the day of the changed circumstance is Tuesday. Tuesday is the day we must provide the CD in order to close on Friday. Can we use the CD to disclose the costs affected by the changed circumstance to reset the tolerances? Or must we provide the LE today (Friday) which is only the second day after the changed circumstance so that is is received 4 days before closing and the CD can be provided on Tuesday so that it has been received 3 days before closing?

Thanks in advance.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2191358 - 08/31/18 02:00 PM Re: Changed Circumstance use LE or CD Likes to Comply
RR Joker Offline
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The Swamp
yes, you can use your CD.
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#2191364 - 08/31/18 02:13 PM Re: Changed Circumstance use LE or CD Likes to Comply
Adam Witmer Offline
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I agree with Joker. TRID 2.0 clarified that a CD can be used for a changed circumstance.
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#2191368 - 08/31/18 02:21 PM Re: Changed Circumstance use LE or CD Likes to Comply
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Follow-up question - If you want/need to provide a revised LE for informational purposes, not for the purpose of resetting tolerances, must the LE be provided within three days of the event that is changing the information?

For example, the customer requests a lower loan amount. When we don't need to reset tolerances, it is generally our practice not to provide a revised LE. On the third day after the customer requested a lower loan amount and only a few hours from the end of the day, they ask us for a new LE with the changes. It will be impossible for us to get the new lower quotes for the various fees that are dependent on the loan amount. If we provide the LE the next day (which is the fourth day after the customer request for a lower loan amount) are we in in violation of re-disclosure timing?
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#2191377 - 08/31/18 02:38 PM Re: Changed Circumstance use LE or CD Likes to Comply
RR Joker Offline
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The Swamp
No. Info LE's do not fall under any timing rules other than it can't be post initial CD.
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#2191388 - 08/31/18 03:16 PM Re: Changed Circumstance use LE or CD Adam Witmer
rlcarey Online
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rlcarey
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Galveston, TX
Originally Posted By Adam Witmer
I agree with Joker. TRID 2.0 clarified that a CD can be used for a changed circumstance.


I think that was 3.0 smile or maybe 2.1?
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#2191407 - 08/31/18 03:49 PM Re: Changed Circumstance use LE or CD Likes to Comply
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Thanks very much!!!

One more scenario...

We have a changed circumstance. The last day to provide the LE from the day of the changed circumstance is Tuesday. Wednesday is the day we must provide the CD in order to close on the following Monday. We have everything we need to provide a CD. Can we use the CD to disclose the costs affected by the changed circumstance to reset the tolerances and provide it on Tuesday? Or must we provide the LE on Tuesday to reset tolerances and then provide the CD on Wednesday to close on Monday?
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#2191410 - 08/31/18 03:55 PM Re: Changed Circumstance use LE or CD Likes to Comply
rlcarey Online
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Rule of thumb is if you have time, the changed circumstance should be documented on a revised LE. Also, unless a holiday is involved, to close on Monday the initial CD has to be delivered on Thursday, not Wednesday.
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#2191411 - 08/31/18 03:57 PM Re: Changed Circumstance use LE or CD rlcarey
Adam Witmer Offline
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Originally Posted By rlcarey
Originally Posted By Adam Witmer
I agree with Joker. TRID 2.0 clarified that a CD can be used for a changed circumstance.


I think that was 3.0 smile or maybe 2.1?


Technically, 2.1. wink
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2191413 - 08/31/18 03:57 PM Re: Changed Circumstance use LE or CD rlcarey
Adam Witmer Offline
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Originally Posted By rlcarey
Rule of thumb is if you have time, the changed circumstance should be documented on a revised LE. Also, unless a holiday is involved, to close on Monday the initial CD has to be delivered on Thursday, not Wednesday.


Exactly.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2191414 - 08/31/18 03:59 PM Re: Changed Circumstance use LE or CD Likes to Comply
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Sorry, I miscounted the days - forgot to include Saturday. Thanks for clarifying and thank you everyone for the help!
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