We found out that the loan will be going from a purchase to a refi and we sent out the LE on a standard - can we switch it to an alternate?

I don't see any reason you can't. Your CD version must match the LE version, so if you switch to the alternate LE, you'll need to be sure to also use the alternate CD.

There are no provisions for switching mid-stream. I would switch at your own risk. If there is an investor involved, you need to be checking with them. There is no requirement to switch - why whack the hornets nest??

Great - thank you both

If the borrower is changing the loan from a purchase to a refinance, I would think that would constitute a change in circumstances and revised disclosures (including changing from standard to alternative) could be accommodated. But certainly, as Randy has said, you definitely won't get in trouble if you leave it on standard.

thank you

Hate to bump an old thread, but I have a loan where the broker accidentally submitted it as a purchase, but it is in fact a refi. Would we need to do a COC to switch it to a Refi, or would they just need to cancel and resubmit the loan? We've already issued a lender disclosed LE as a purchase.

I personally would let it ride and correct it for the CD unless I had some other change in the mean time. COC's are limited to changes in fees. However, you should be able to issue an info-only LE if you wanted to make that change.

Look at Randy's comment above and then go back to the Reg. You're suppossed to start and finish on the same form type and the standard one can be used for any transaction. That's what we all used before the alternate form came out, remember?
Borrowers don't request to move from purchase to refi as much as banks make mistakes on what form they use. FNMA hasn't gone to rejecting refis if they're not on the alternate form so I would just keep going with what you started with. Why whack the hornet's nest?

What you can't do is use a standard LE and a "no seller" CloD. That's forbidden because it makes it difficult to compare numbers in the CCC table between the two formats.

I think you could issue a revised LE to change to a no-seller format, even if there is no changed circumstance to trigger the LE. But it can be challenging if any costs have changed (you will have to disclose them but won't be able to use the increased numbers in the tolerance calculations). As others have pointed out, you can use the standard CloD format even for a refi. It will just be clunky to do.

I dont think we'd want to use the standard form throughout. Id rather just swtich it to alternate. But as others have stated above, if I have to end with what we started with, switching would be pointless.

Would we be wrong in just switching this to Alternate and proceeding like that?

There is no guidance that allows you to switch midstream - you need consistency throughout the transaction with the cash to close tables. Since you are allowed to either use the standard or the alternative form on a non-seller transaction, you are asking for trouble.

HI- I have a refinance disclosure on the standard form, which I thought was allowed but when I run UCD thru Fannie/Freddie, I am receiving warnings that "Closing Disclosure Alternate form are required"(Fannie) and "The use of the Alternate Foirm H-25(e) is required for all refinance's" These are both only warnings, not fatal, but I am wondering when the guideline changed and if someone can provide the reference. thank you

That warning has been out there for at least a year or so now. The question is when are they going to make it a fatal error.

Thank you! We have never had this issue before so I was a little concerned but as usual, you guys came thru with the information that I needed! thank you again