Upon receipt of the closing statement, our borrower indicated he and the seller had an arrangement that he (the borrower) would be paying all closing costs. We had no knowledge of this until today. Our purchase agreement was a document drawn up between the two parties, however, there was no mention of the closing costs. Are we safe to provide a revised closing statement, and do we have to wait an additional 3 days to close?

A new three business day wait period during the CD disclosure phase is only required under the following circumstances:

• The annual percentage rate disclosed becomes inaccurate, as defined in § 1026.22. An over disclosure of the APR with a corresponding over disclosure of the finance charge is not considered inaccurate under 1026.22.

• The loan product is changed, causing the loan product information disclosed to become inaccurate.

• A prepayment penalty is added, causing the statement regarding a prepayment penalty to become inaccurate.

So can we provide a revised CD due to the date of the borrower provided information of the changed circumstances?

If the transfer tax is not a finance charge and your APR is not now out of tolerance, then you have three business days to issue your changed circumstance CD or at closing, whichever occurs first, from the date this new information was presented to you.