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#2244717 - 10/27/20 09:15 PM New LE Required?
mnbanker09 Offline
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Joined: Jan 2018
Posts: 128
TRID help please. On the LE we disclosed an Evaluation Fee, as the bank's loan policy indicates based on the loan amount that an evaluation is sufficient. The third-party that was contracted to complete the evaluation indicated there was not information 'subject information' in order to complete the evaluation. The property is a new construction, not sure if that's the issue. Lender indicated a full appraisal is now necessary. Higher cost than originally disclosed. Does the bank eat the cost on this on the difference or does this qualify as a change in circumstance and we can re-disclose?

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Lending Compliance
#2244719 - 10/27/20 09:26 PM Re: New LE Required? mnbanker09
Inspector Offline
Gold Star
Joined: Apr 2016
Posts: 283
It could fall into one of the below categories but you should evaluate whether this is something you should have been aware of. If, as you said, this is going to be the outcome when dealing with new construction then this would be something you should have already known. In my opinion, this is going to come down to whether there was something specific about this transaction that prevented the evaluation or if this was an oversight on someone's part where the factors prohibiting the evaluation were already known.

(1) An extraordinary event beyond the control of any interested party or other unexpected event specific to the consumer or transaction;

(2) Information specific to the consumer or transaction that the creditor relied upon when providing the disclosures required under paragraph (e)(1)(i) of this section and that was inaccurate or changed after the disclosures were provided; or

(3) New information specific to the consumer or transaction that the creditor did not rely on when providing the original disclosures required under paragraph (e)(1)(i) of this section.
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#2244720 - 10/27/20 09:28 PM Re: New LE Required? mnbanker09
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Maybe - but the reasoning so far is pretty sketchy. What new or changed information is there? The fact that you have a third party evaluator that cannot do the job is not a change to the original information provided.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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