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#2193993 - 09/27/18 02:12 PM Expiration of LE - 10 days minimum
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Where is the reference in Reg Z that requires the expiration date of the LE to be at least 10 days out from when the LE is mailed or delivered? I can't find it.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2193994 - 09/27/18 02:14 PM Re: Expiration of LE - 10 days minimum Likes to Comply
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Is it just inferred from the rule for Expiration of the LE at 1026.19(e)(3)(iv)(E)?
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#2193995 - 09/27/18 02:16 PM Re: Expiration of LE - 10 days minimum Likes to Comply
Inherent_Risk Offline
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1026.19(e)(3)(iv)(E)

Edit: You're fast. That is the citation. There's nothing in there that says the date has to be pushed back after re-disclosure that I see. Commentary says "more than 10 business days after the disclosures were originally provided under e(1)(iii)"
Last edited by Inherent_Risk; 09/27/18 02:26 PM.
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#2193996 - 09/27/18 02:16 PM Re: Expiration of LE - 10 days minimum Likes to Comply
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So if we provide an LE today, have a change in circumstance tomorrow, we have not received an intent to proceed, do we have to extend out the expiration date of the LE for one more day? Or can we stick to the original expiration date no matter what?
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#2194007 - 09/27/18 02:52 PM Re: Expiration of LE - 10 days minimum Likes to Comply
Truffle Royale Offline

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The date on the original LE is the start of the 10 day clock.
But, when you throw in TRID 2.0 changes, if anything changed after you issued the original LE but before you issued the second, you should have captured that change on the re-disclosed LE.
I guess what I'm saying is that I don't understand why an expiration date is so important to you. TRID says you must stand by the prices quoted for a minimum of 10 days but I've yet to see a situation where the bank didn't honor those prices on Day 12 or even Day 20 unless you're issuing rate locked LEs from the start.

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#2194019 - 09/27/18 03:48 PM Re: Expiration of LE - 10 days minimum Likes to Comply
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The expiration date is important to me because I am being asked the following questions from a loan processor and I want to be sure I understand the requirements for disclosing the expiration date before I respond. We honor the quote even after expiration but we are worried about disclosing the expiration date properly -

> If we do not have an intent to proceed and it is during the first 10 day expiration period – we need to give them an additional 10 days?
> If we have an intent to proceed - we leave it blank no matter if (the revised LE) is provided during the expiration period or after the expiration period?

We never updated the expiration date in the past, I just wanted to be sure that was still ok..
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#2194026 - 09/27/18 04:16 PM Re: Expiration of LE - 10 days minimum Likes to Comply
Truffle Royale Offline

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Got it. That information helps give a basis for how to answer your questions.
The answer to your first question is no. The ten days for intent is linked to the original LE. A valid changed circumstance may occur within that ten day time frame and you must meet the three day to re-disclose rule but it doesn't reset the ten day intent clock.
The answer to your second question is yes, you are correct that you leave it blank.

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#2194030 - 09/27/18 04:21 PM Re: Expiration of LE - 10 days minimum Likes to Comply
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Thanks very much for the help!
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#2194059 - 09/27/18 05:39 PM Re: Expiration of LE - 10 days minimum Likes to Comply
John Burnett Offline
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The source for the information is new comment 37(a)(13)-4:

4. Revised disclosures. Once the consumer indicates an intent to proceed within the time specified by the creditor under §1026.37(a)(13)(ii), the date and time at which estimated closing costs expire are left blank on any subsequent revised disclosures. The creditor may extend the period of availability to expire beyond the time disclosed under § 1026.37(a)(13)(ii). If the consumer indicates an intent to proceed within that longer time period, the date and time at which estimated closing costs expire are left blank on subsequent revised disclosures, if any. See comment 19(e)(3)(iv)-5.
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#2272364 - 07/01/22 03:23 PM Re: Expiration of LE - 10 days minimum Truffle Royale
Eric The Underwriter Offline
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TR, can you help me understand your stance on subsequent LE's issued prior to the receipt of intent to proceed? Is this based on something in regulation or commentary somewhere? My understanding is that the reg states (or really implies) that a Loan Estimate should have an expiration date at least 10 days out from the issuance date. TRID 2.0 cleared up what should be shown as the expiration on LE's issued after intent. But, for LE's issued after the very first one and prior to receipt of intent to proceed, I can find nothing that implies the creditor can issue a LE without giving at least 10 days.

To be completely clear...the situation i am referring to would go like this. LE #1 is issued on 7/1 and shows a 10 day expiration date of 7/11. The borrower requests a change and LE #2 is issued on 7/4. The borrower gives intent to proceed on 7/7. Should the expiration date on LE #2 be 7/11 or 7/15?

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#2272366 - 07/01/22 03:41 PM Re: Expiration of LE - 10 days minimum Likes to Comply
rlcarey Online
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I would have the same question.
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#2272374 - 07/01/22 05:28 PM Re: Expiration of LE - 10 days minimum Likes to Comply
Dan Persfull Offline
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2. Expiration date. The disclosure required by § 1026.37(a)(13)(ii) related to estimated closing costs is required regardless of whether the interest rate is locked for a specific period of time or whether the terms and costs are otherwise accepted or extended. If the consumer fails to indicate an intent to proceed with the transaction within 10 business days after the disclosures were originally provided under § 1026.19(e)(1)(iii) (or within any longer time period established by the creditor), then, for determining good faith under § 1026.19(e)(3)(i) and (ii), a creditor may use a revised estimate of a charge instead of the amount originally disclosed under § 1026.19(e)(1)(i). See comment 19(e)(3)(iv)(E)-2.


IMHO the expiration date from the original LE would not be extended with LE #2..
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#2272376 - 07/01/22 06:47 PM Re: Expiration of LE - 10 days minimum Likes to Comply
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So, I come in an want a 30-year loan and you give me a LE. I think about it and come back a week later and say I think I might want a 15-year ARM loan instead. You think that means the new LE only has to be good for 3 days?

If this is a new product or different loan, why would the offer only be good for less than 10 days? Why else would you be amending a LE prior to the original expiration date? If they want the terms on the first LE issued, they could still give an intent to proceed on that LE.
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#2272381 - 07/01/22 07:48 PM Re: Expiration of LE - 10 days minimum Likes to Comply
Dan Persfull Offline
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In that proposed situation you are changing loan programs - going from fixed to variable - in that case I would agree a LE for the new loan request would be needed and the original LE for that new loan request would need to follow 1026.37 in addition to providing the ARM disclosures.

However, if all you are doing is requesting a change from a 30 year fix to a 15 year fix then in that case I provided the original LE within the required time frame and you changing the terms of that request does not IMO nullify the original LE unless the FI to chooses to treat the change as a new loan request separate from the original.

I'm leaving for vacation so I'll pick up on this when I return on the 11th if necessary.
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