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#2193753 - 09/25/18 07:28 PM TRID - Reasonably Available Standard
A.B. Offline
100 Club

Registered: 11/04/05
Posts: 165
Loc: KY
In reference to new citation under 1026.19(e)(3)(iv) – Comment 5, it mentions when disclosing under good faith that “any disclosures must be based on the best information reasonably available…at the time [revised disclosures] are provided to the consumer.”

It then refers to an example using a rate lock extension fee that reads: For example, if the creditor issues revised disclosures reflecting a new rate lock extension fee for purposes of determining good faith under § 1026.19(e)(3)(i), other "charges" unrelated to the rate lock extension must be reflected on the revised disclosures based on the best information reasonably available to the creditor at the time the revised disclosures are provided.

With the above background listed, my scenario is this:
If the Loan Estimate was provided on Monday, September 10th. We acquired the purchase contract on Wednesday, September 12th. Within the contract is an escrow deposit, seller credit, home inspection fee, and a pest inspection fee. We received a signed rate lock agreement on Friday, September 14th, which will require a revised disclosure.

My question is:
When compiling the revised disclosure, should the escrow deposit, seller credit, and inspection fees be listed since it states in one area that “any disclosures must be based on the best information reasonably available”? While a deposit and seller credit are not charges (see below), inspection fees would be but would be but in the variations permitted category.

As it relates to "charges", in the example that it gives in the same section, it alludes to only “charges” so one could as it would meet the point of the regulation since it is the best information readily available that we have at the time of the revised disclosure

Just wanted to get some thoughts.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2193789 - 09/25/18 10:47 PM Re: TRID - Reasonably Available Standard [Re: A.B.]
rlcarey Online
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Registered: 07/16/01
Posts: 70004
Loc: Galveston, TX
I think this says it all. "any disclosures must be based on the best information reasonably available to the creditor at the time they are provided to the consumer"
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#2193802 - 09/26/18 11:45 AM Re: TRID - Reasonably Available Standard [Re: A.B.]
RVFlyboy Offline
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Registered: 10/27/00
Posts: 5824
Loc: Soaring over Georgia
I agree with Randy that your updated LE would need to reflect the information from the sales contract. That is the best information reasonably available to you at the time of re-disclosure. The examples provided are just that - examples. They are not all inclusive.


Edited by BeechFlyboy (09/26/18 11:46 AM)
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#2193804 - 09/26/18 12:00 PM Re: TRID - Reasonably Available Standard [Re: A.B.]
Adam Witmer Offline
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Registered: 09/21/10
Posts: 1848
FWIW - I agree with Jim and Randy. You have this information and, therefore, providing this information would appear to be the best information reasonably available to you at the time of re-disclosure.
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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.
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#2193805 - 09/26/18 12:38 PM Re: TRID - Reasonably Available Standard [Re: A.B.]
A.B. Offline
100 Club

Registered: 11/04/05
Posts: 165
Loc: KY
Thanks to all. I appreciate the input.
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#2206649 - 02/20/19 11:02 PM Re: TRID - Reasonably Available Standard [Re: A.B.]
Raquel Offline
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Registered: 08/27/07
Posts: 128
In a different scenario in which a change of circumstances exists and a revised LE is completed for that fee, example an appraisal fee. Lender gave an estimate for title fees and provided a shopping list. At the time that the LE is being revised, the lender has information that the customer selected a provider that was not on the shopping list for title. Is there any expectation that the lender would or should contact the selected provider and obtain their fees to be disclosed on the revised LE? We are having an internal discussion regarding what is considered "reasonably available" in this situation.

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#2206654 - 02/21/19 12:15 AM Re: TRID - Reasonably Available Standard [Re: A.B.]
rlcarey Online
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Registered: 07/16/01
Posts: 70004
Loc: Galveston, TX
The best information reasonably available to the creditor is just that. If you have the information you have to disclose it. You do not have to jump through hoops to go get it. If you have been in communication with the title company and they have communicated their fees to you, then yes, you would have to update the fees.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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