A revised loan estimate should not reflect fee changes not caused by a changed circumstance correct? For example if a revised disclosure is provided at rate lock should the escrow or prepaids be updated to reflect the actual amounts if we now know them?

I will let you be the judge, but I do not note that changing non-related fees are mentioned.:

19(e)(3)(iv)(D) Interest rate dependent charges.

1. Requirements. If the interest rate is not locked when the disclosures required by § 1026.19(e)(1)(i) are provided, a valid reason for revision exists when the interest rate is subsequently locked. No later than three business days after the date the interest rate is locked, § 1026.19(e)(3)(iv)(D) requires the creditor to provide a revised version of the disclosures required under § 1026.19(e)(1)(i) reflecting the revised interest rate, the points disclosed pursuant to § 1026.37(f)(1), lender credits, and any other interest rate dependent charges and terms.

That is what I thought but loan origination softwares make if difficult when you have to change all the fees back when you redisclosed within the software.

Hey Terspfan I've got a similar question. Let's say the loan amount goes down a couple of weeks ago but we don't do a revised LE. Then we re-lock the rate this week on the reduced loan amount at a lower rate. We send a revised LE due to the lock event/extension. Should/would/can the revised LE reflect the new lower loan amount and the corresponding reduction in fees even though that occurred more than 3 business days ago. And...if we are aware of more current unlimited tolerance item changes can we revise our estimate to show those to give the customer a more accurate disclosure? Our LOS also makes this very difficult (and opens us up to the chance of error when we're having to undwind updated numbers to go back to some of the disclosure elements on the original LE. If we switch all of the numbers back to the "original" LE for the revised LE

We've been fighting some of this since January 2010 RESPA but it's really causing more issues for us now.

Sure, you can disclose the updated numbers, but you can only change your basis amount for good-faith tolerance calculations if you do so in a revised loan estimate delivered within three business days of your learning of the change triggering the change in cost. Although the fees subject to each tolerance level group are different from those in the 2010 rule, the concept isn't new.

My concern with updating the other fees comes from the following

2. Actual increase. The revised disclosures may reflect increased charges only to the extent that the reason for revision, as identified in § 1026.19(e)(3)(iv)(A) through (F), actually increased the particular charge. For example, if a consumer requests a rate lock extension, then the revised disclosures may reflect a new rate lock extension fee, but the fee may be no more than the rate lock extension fee charged by the creditor in its usual course of business, and other charges unrelated to the rate lock extension may not change

This example from the rule seem to conflict though since it mentions increases not affected by change circumstance.

During underwriting it is discovered that the consumer was delinquent on mortgage loan payments in the past, making the consumer ineligible for the loan program originally identified on the estimated disclosures, but the consumer remains eligible for a different program that requires an appraisal. If the creditor provides revised disclosures reflecting the new program and including the appraisal fee, then the actual appraisal fee will be compared to the appraisal fee included in the revised disclosures to determine if the actual fee has increased above the estimated fee. However, if the revised disclosures also include increased estimates for title fees, the actual title fees must be compared to the original estimates assuming that the increased title fees do not stem from the change in eligibility or any other change warranting a revised disclosure.

How is everyone handling non affected charges such as escrow amounts? Are you updating these on revised LEs?

Every disclosure that you issue when you are not required to do so is just one more disclosure that you can screw up. I have advised my clients that they really need to think about that.

As for your 02/29 post 2066633, you need to figure out how your LOS works. Can you reset your tolerance for the appraisal and not reset the tolerance on the title fees when you issued the revised LE? If you change the title fees on the revised LE when you add the appraisal, the you would have to be pulling numbers from two different LE's for your comparison in that situation.

Our software does reset the tolerance so changing fee not affect does cause on revised LEs does create issues but I am having trouble determining whether we are supposed to or not.