Redisclose a change in loan amount?

Posted By: Pamlissa

Redisclose a change in loan amount? - 06/04/10 02:58 PM

I have a rate & term refi in Texas that is supposed to close tomorrow. We lowered the loan amount by $4,000 because the pay-off came in lower than we initially thought. No other charges are being changed. Do we need to redisclose and then wait three days to close or can we go on ahead without redisclosing?
Posted By: Dan Persfull

Re: Redisclose a change in loan amount? - 06/04/10 03:08 PM

There would be no need to issue a revised GFE reflecting the change in the loan amount.
Posted By: Pamlissa

Re: Redisclose a change in loan amount? - 06/04/10 03:09 PM

Thanks, Dan!
Posted By: Web

Re: Redisclose a change in loan amount? - 06/04/10 03:19 PM

Isn't a revised TIL required since APR will likely be out of tolerance?

We have similar situation b/c appraisal came back less than expected so loan amount is less; is revised GFE applicable then?
Posted By: Pamlissa

Re: Redisclose a change in loan amount? - 06/04/10 03:20 PM

APR is not out of tolerance in this case.
Posted By: Web

Re: Redisclose a change in loan amount? - 06/04/10 03:37 PM

If it were though a revised TIL would need to be given right,but not GFE?

I see in RESPA where it talks about what changed circumstances do not include, but I don't really understand what it is saying (unless the information changes or is found to be inaccurate after the GFE has been provided)? Wouldn't the changed amount make it inaccurate? i appreciate your thoughts.

(2) Changed circumstances do not include:
(i) The borrower's name, the borrower's monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator prior to providing the GFE, unless the information changes or is found to be inaccurate after the GFE has been provided; or
(ii) Market price fluctuations by themselves.
Posted By: Dan Persfull

Re: Redisclose a change in loan amount? - 06/04/10 03:57 PM

There were no fees affected by the changed loan amount therefore there is no need to issue a revised GFE.

The only time you are mandated to issue a revised GFE is when the consumer initiates a rate lock. Regardless of any other changed circumstance, as long as the lender is willing to live with the fees disclosed on the GFE, they are not required to issue a revised GFE.

Under MDIA you always have to issue a revised ETIL if the APR is out of tolerance, but it and the GFE are not dependent on one another when it comes to the requirements for issuing revised disclosures.
Posted By: Web

Re: Redisclose a change in loan amount? - 06/04/10 04:00 PM

Thank you for the clarification.
Posted By: mcrain

Re: Redisclose a change in loan amount? - 07/06/11 04:33 PM

What if the property tax amount changes?
Posted By: Dan Persfull

Re: Redisclose a change in loan amount? - 07/06/11 04:37 PM

What caused the property tax amount to change?
Posted By: Truffle Royale

Re: Redisclose a change in loan amount? - 07/06/11 05:20 PM

Property taxes do not go on a GFE nor do they could towards PPFC so a change in property tax amount has no effect on either the GFE or the TIL.

If you're talking Block 9, you cannot change the escrow amounts just because you know the correct tax amount now. That block does not have a tolerance anyway.
Posted By: mcrain

Re: Redisclose a change in loan amount? - 07/13/11 07:18 PM

Appraisal came in at lower amount. No previous tax record because it's a new construction.