TRID: Changed Circumstances & Revised Disclosures

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TRID: ChangedCircumstances &Revised DisclosuresNovember 14, 2018Turning Regulations intoPLAIN ENGLISH!

Table of ContentsTRID .I.“Good Faith” Tolerances . 1II.Revising the Loan Estimate . 4The “Good Faith” Effect* on Revised Loan Estimates . 5III. Revising the Closing Disclosure . 10* Words in Italics are taken directly from the applicable regulations.A

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. Theinformation contained within this manual pertains to federal regulations. Banker's Compliance Consulting makes everyattempt to understand applicable state laws as well; however, this information may not be represented in this manual. Ifyou are aware of state laws that conflict with information presented in this manual, please contact Banker's ComplianceConsulting. This publication contains the author’s opinion on the subject. All rights reserved. This manual may not bereproduced in whole or in part in any form whatsoever without permission from the publisher. The publisher herebyspecifically disclaims any personal liability for loss or risk incurred as a consequence of the advice or information presentedin this book.Copyright 1997 – 2018All rights reserved.Printed in the United States of AmericaBanker’s Compliance ConsultingPO Box 87Central City, Nebraska B

TRIDRegulation Z – 12 CFR 1026Regulation X – 12 CFR 1024I.“Good Faith” Tolerances:The Loan Estimate must be provided in good faith. if any information necessary for an accurate disclosure isunknown to the creditor, the creditor shall make the disclosure based on the best information reasonably availableto the creditor at the time the disclosure is provided to the consumer. The “reasonably available” standard requiresthat the creditor, acting in good faith, exercise due diligence in obtaining information. [Commentary to§1026.19(e)(1)(i) #1]Generally, an estimated closing cost will be considered to be “in good faith” if the actual final amount paid(unrounded) by the consumer on final Closing Disclosure does not exceed the amount (unrounded) indicated on thefinal (i.e., due to changed circumstances) Loan Estimate Disclosure (i.e., zero tolerance). [§1026.19(e)(3) andCommentary to §1026.19(e)(3)]A. Zero Tolerance:Unless otherwise specified the following fees (not necessarily all inclusive) cannot increase:1.Lender or Broker Fees2.Lender or Broker Credits3.Investor Fees4.Affiliate (Lender or Broker) Fees:Any fee paid to another who is owned, controlled or can be voted upon in a capacity meeting or exceeding25% (also includes a controlling interest in the election of directors).5.Transfer Taxes6.Third Party Service Provider Fees (Lender or Broker Required)Where the consumer is not allowed to shop for a provider. For example (illustrative only):a. Credit Reportb. Flood Determinationc. Appraisald. Title ServicesBanker’s Compliance Consulting1-800-847-16531

TRIDB. 10% Tolerance: [§1026.19(e)(3)(ii)]The cumulative total of actual fees for applicable third-party services required by the bank andgovernment recording fees disclosed on the Closing Disclosure cannot exceed the corresponding LoanEstimate Disclosure cumulative total by more than 10%. Included are:1.Unaffiliated Third Party Service Provider Fees (Lender or Broker Required):The applicant is allowed to shop for the provider of a third party service require by the bank. Whether ornot the applicant was allowed to “shop” in relation to the determination of the cumulative 10% tolerance isbased upon all relevant facts and circumstances. For example:a. Shopping List:Non-compliance with TRID shopping list requirements* is not an absolute determining factor. Forexample if you forgot to provide the shopping list or failed to provide a provider on the shopping list. Ifyou can demonstrate that the applicant was allowed to shop, the fee related to that service could beincluded within the cumulative 10% tolerance. [Commentary to §1026.19(e)(3)(iii) #2]b. Loan Estimate:Non-compliance with TRID Loan Estimate section C disclosure requirements* is not an absolutedetermining factor. For example, if a service was omitted from section C of the Loan Estimate butchanged at consummation. If you can demonstrate that the applicant was allowed to shop, the feerelated to that service could be included within the cumulative 10% tolerance. [Commentary to§1026.19(e)(3)(ii) #2]*Note: However, non-compliance as noted above is still a violation with respect to the Shopping List andor Loan Estimate requirements.2.Government Recording FeesBanker’s Compliance Consulting1-800-847-16532

TRIDC. Unlimited Tolerance: [§1026.19(e)(3)(iii)]Some charges may exceed the amounts disclosed (even if paid to an affiliate) on the Loan Estimate if theestimate was based upon the best information available to the creditor at the time it was disclosed. Thosecharges include:1.Prepaid (Odd Days) Interest2.Property Insurance Premiums:All property insurance premiums (i.e., hazard, flood, etc.), required or not, are subject to an unlimitedtolerance. However, the lender does not comply with the “good faith” requirement if property insurance isrequired but not disclosed.The rule provides that property insurance premiums are included in the category of settlement chargesnot subject to a tolerance, whether or not the insurance provider is a lender affiliate. [Federal Register12/31/13 page 79829]3.Escrow Deposit4.Third-Party Service Provider Fees (Lender or Broker Required):If the consumer was allowed to shop and selected a provider not included on the shopping list.5.Voluntary Third-Party Services:Charges for third-party services not required by the lender. However, it’s not absolute. For example, if theconsumer informs the creditor that the consumer will obtain a type of inspection not required by thecreditor, the creditor must include the charge for that item in the disclosures provided but the actualamount of the inspection fee need not be compared to the original estimate for the inspection fee to performthe good faith analysis [Commentary to §1026.19(e)(3)(iii) #3]But, if the subject property is located in a jurisdiction where consumers are customarily represented atclosing by their own attorney, even though it is not a requirement, and the creditor fails to include a fee forthe consumer’s attorney, or includes an unreasonably low estimate for such fee, on the original estimatesprovided then the creditor’s failure to disclose, or unreasonably low estimation, does not comply [Commentary to §1026.19(e)(3)(iii) #3]6.Property Taxes:Additionally, if the creditor fails to include a charge for property taxes, or includes an unreasonably lowestimate for that charge, on the original estimates provided then the creditor’s failure to disclose, orunreasonably low estimation, does not comply [Commentary to §1026.19(e)(3)(iii) #3]D. Service Not Utilized:If the estimated fee for a service was included on the Loan Estimate Disclosure but ultimately the service wasnot used, the estimated fee for that service cannot be included within the tolerance calculations.[Commentary to §1026.19(e)(3)(ii) #5]Banker’s Compliance Consulting1-800-847-16533

TRIDII.Revising the Loan Estimate:A. Tolerance Reset Loan Estimate Re-Disclosure:A revised Loan Estimate (for comparison/tolerance purposes) may only be provided in connection with avalid changed circumstance. [§1026.19(e)(3)(iv) and Commentary to §1026.19(e)(3)(iv)]B. Information Only Loan Estimate Re-disclosure:A lender may issue a revised Loan Estimate Disclosure for informational purposes, e.g., to keep theconsumer apprised of updated information, even if the revised disclosures may not be used for purposes ofdetermining good faith For example a lender could issue revised disclosures even though the sum of allcosts subject to the 10 percent tolerance category has not increased by more than 10 percent. However, therevised disclosure cannot be used to determine either the 0% or 10% tolerances. [Commentary to§1026.19(e)(3)(iv) #4]C. Revised Loan Estimates and the “Good Faith” Requirement:Any revised disclosure (to reset tolerances and/or for informational purposes) issued must be based on thebest information reasonably available to the creditor at the time they are provided to the consumer Forexample, if the creditor issues revised disclosures reflecting a new rate lock extension fee other chargesunrelated to the rate lock extension must be reflected on the revised disclosures based on the best informationreasonably available to the creditor at the time the revised disclosures are provided. Nonetheless, anyincreases in those other charges unrelated to the rate lock extension (the legitimate changed circumstance)may not be used to determine either the 0% or 10% tolerances. [Commentary to §1026.19(e)(3)(iv) #5]D. Intent to Proceed Date:Once the consumer indicates an intent to proceed within the time specified by the creditor the date and time atwhich estimated closing costs expire are left blank on any subsequent revised disclosures. [Commentary to§1026.37(a)(13) #4]Banker’s Compliance Consulting1-800-847-16534

1-800-847-1653Banker’s Compliance ConsultingBefore closing, your interest rate, points, and lender credits canchange unless you lock the interest rate. All other estimatedclosing costs expire on30 yearsPurchase5 Year Interest Only, 5/3 Adjustable RateConventional FHA VA1330172608NO YES, until*July 7, 2017 TRID Update Final RuleThe original Loan Estimatewas delivered. The 500appraisal charge was notdisclosed.PAGE 1 OF 3 LOAN ID # 1330172608PAGE 1 OF 3 LOAN ID # 1330172608Visit www.consumerfinance.gov/mortgage-estimate for general information and tools.Includes Closing Costs. See Calculating Cash to Close on page 2 for details.Includesin Loan Costs in Other Costs –in Lender Credits. See page 2 for details.See Section G on page 2 for escrowed property costs. You must pay for otherproperty costs separately.LOAN ESTIMATEIn escrow?Includes Closing Costs. See Calculating Cash to Close on page 2 for details.Includesin Loan Costs in Other Costs –in Lender Credits. See page 2 for details.See Section G on page 2 for escrowed property costs. You must pay for otherproperty costs separately.This estimate includesProperty TaxesHomeowner’s InsuranceOther:Does the loan have these features?PAGE 1 OF 3 LOAN ID # 1330172608Visit www.consumerfinance.gov/mortgage-estimate for general information and tools.Estimated Cash to CloseEstimated Closing CostsCosts at ClosingAmount can increase over timeEstimated Taxes, Insurance& AssessmentsBefore closing, your interest rate, points, and lender credits canchange unless you lock the interest rate. All other estimatedclosing costs expire on30 yearsPurchase5 Year Interest Only, 5/3 Adjustable RateConventional FHA VA1330172608NO YES, untilCan this amount increase after closing?PURPOSEPRODUCTLOAN TYPELOAN ID #RATE LOCKLOAN TERMSave this Loan Estimate to compare with your Closing Disclosure.LenderSellerIn escrow?ConventionalFHAVAPAGE 1 OF 5 LOAN ID # 0000000000Includes Closing Costs. See Calculating Cash to Close on page 3 for details.Includes 5,877.00 in Loan Costs 7,642.43 in Other Costs – 0in Lender Credits. See page 2 for details.See Escrow Account on page 4 for details. You must pay for other propertycosts separately.This estimate includesProperty TaxesHomeowner’s InsuranceOther:Does the loan have these features?Can this amount increase after closing?Loan ID #MIC #Loan TypeLoan TermPurposeProductLoan InformationThis form is a statement of final loan terms and closing costs. Compare thisdocument with your Loan Estimate.Transaction InformationBorrowerThe Loan Estimate column within theCash to Close table on page 3 mustbe completed using the fees noted onRevised LE #2.The Closing Disclosure is ready.CLOSING DISCLOSURECash to CloseClosing CostsCosts at ClosingAmount can increase over timeSee page 4 for detailsEstimated Taxes, Insurance& AssessmentsEstimated TotalMonthly PaymentEstimated EscrowAmount can increase over timeMortgage InsurancePrincipal & InterestPayment CalculationProjected PaymentsBalloon PaymentPrepayment PenaltySee Projected Payments below for yourEstimated Total Monthly PaymentMonthly Principal & InterestInterest RateLoan AmountLoan TermsSale PriceDate IssuedClosing DateDisbursement DateSettlement AgentFile #PropertyClosing InformationClosing DisclosureJanuary 31stClosing DisclosureVersion 1.0A revised LE adding the inspection fee To calculate fees for tolerancemust be provided within 3 businesspurposes, the fees on the CD must bedays of receiving the appraisal in order compared as follows:to capture the 100 inspection fee.Appraisal Fee From Original LEEffective 10/1/18: Any revised LEOrigination Fee From Revised LE #1must be completed based on the best Inspection Fee From Revised LE #2information available at the timeTitle Insurance Fee From Original LEdisclosure is provided (i.e. “GoodAll Other Charges From Original LEFaith Standard”). So, in addition torevising the information related to thechanged circumstance (inspectionfee), the lender is required to updateanything that is new or inaccurate inrelation to the the previous LE(Revised LE #1). In this example, theactual cost of the owner’s and lender’stitle insurance is now known andtherefore must be updated.The appraisal is received. There is arepair that must be completed beforethe appraiser will sign off on the finalappraisal. The appraiser will alsocharge a 100 inspection fee to verifythe repair has been completed.800 847 mpliance.comEffective 10/1/18: Any revised LEmust be completed based on the bestinformation available at the timedisclosure is provided (i.e. “GoodFaith Standard”). So, in addition torevising the information related to thechanged circumstance (loan amountand origination fee) the lender isrequired to update anything new orinaccurate. This includes anythingrelated to the purchase agreementreceived January 8th and must includethe 500 appraisal change that wasnot disclosed on the original LE.A revised LE to adjust the loan amountand origination fee must be providedwithin 3 business days of the requestin order to capture the 250origination fee increase.Loan Amount: 100,000 to 125,0001% Fee: 1,000 to 1,250The borrower requests an increase inthe loan amount affecting the bank’s1% origination fee:LOAN ESTIMATEEstimated Cash to CloseCosts at ClosingEstimated Closing CostsIncludes Closing Costs. See Calculating Cash to Close on page 2 for details.Visit www.consumerfinance.gov/mortgage-estimate for general information and tools.Includesin Loan Costs in Other Costs –in Lender Credits. See page 2 for details.LOAN ESTIMATEEstimated Cash to CloseAmount can increase over timeCosts at ClosingSee Section G on page 2 for escrowed property costs. You must pay for otherproperty costs separately.Estimated Taxes, Insurance& AssessmentsEstimated Closing CostsAmount can increase over timeEstimated Taxes, Insurance& AssessmentsIn escrow?Estimated TotalMonthly PaymentAmount can increase over timeEstimated EscrowPrincipal & InterestPayment CalculationProjected PaymentsBalloon PaymentPrepayment PenaltySee Projected Payments below for yourEstimated Total Monthly PaymentMonthly Principal & InterestInterest RateLoan AmountLoan TermsPROPERTYSALE PRICEDATE ISSUEDAPPLICANTSLoan EstimateMortgage InsuranceThis estimate includesProperty TaxesHomeowner’s InsuranceOther:Does the loan have these features?The title insurance bill isreceived. The actual cost ofthe owner’s and lender’stitle insurance is known.January 22ndRevised LE #2Estimated EscrowEstimated TotalMonthly PaymentIn escrow?Before closing, your interest rate, points, and lender credits canchange unless you lock the interest rate. All other estimatedclosing costs expire on30 yearsPurchase5 Year Interest Only, 5/3 Adjustable RateConventional FHA VA1330172608NO YES, untilCan this amount increase after closing?PURPOSEPRODUCTLOAN TYPELOAN ID #RATE LOCKLOAN TERMSave this Loan Estimate to compare with your Closing Disclosure.January 18thTitle Insurance BillMortgage InsurancePrincipal & InterestPayment CalculationProjected PaymentsBalloon PaymentPrepayment PenaltySee Projected Payments below for yourEstimated Total Monthly PaymentMonthly Principal & InterestInterest RateLoan AmountLoan TermsPROPERTYSALE PRICEDATE ISSUEDAPPLICANTSLoan EstimateEstimated TotalMonthly PaymentA purchase agreement isreceived indicating newinformation; however, itdoes not impact anytolerance-related charges.The lender is not required toprovide a revised LE at thispointJanuary 14thRevised LE #1Amount can increase over timeThis estimate includesProperty TaxesHomeowner’s InsuranceOther:Does the loan have these features?Can this amount increase after closing?PURPOSEPRODUCTLOAN TYPELOAN ID #RATE LOCKLOAN TERMSave this Loan Estimate to compare with your Closing Disclosure.January 8thPurchase AgreementAmount can increase over timeEstimated EscrowMortgage InsurancePrincipal & InterestPayment CalculationProjected PaymentsBalloon PaymentPrepayment PenaltySee Projected Payments below for yourEstimated Total Monthly PaymentMonthly Principal & InterestInterest RateLoan AmountLoan TermsPROPERTYSALE PRICEDATE ISSUEDAPPLICANTSLoan EstimateJanuary 5thOriginal Loan EstimateThe “Good Faith” Effect* on Revised Loan EstimatesTRID5

TRIDE. Changed Circumstances:1.2.3.4.5.Extraordinary Event – Beyond Anyone’s Control: [§1026.19(e)(3)(iv)(A)(1)]a.Warb.Natural DisasterInaccurate Information: [§1026.19(e)(3)(iv)(A)(2)]a.Income Verificationb.Employment VerificationNew Information: [§1026.19(e)(3)(iv)(A)(3)]a.Unknown Appraisal Issuesb.Unknown Property Boundary Issuesc.Pest Inspection IssuesApplicant Eligibility: eral ValueApplicant Requested Change: [§1026.19(e)(3)(iv)(C)]a.Amortization Scheduleb.Fixed vs. Variable Rate Featurec.Power of Attorney AddedBanker’s Compliance Consulting1-800-847-16536

TRID6.Loan Estimate Expiration: [§1026.19(e)(3)(iv)(E)]The consumer does not indicate an intent to proceed with the transaction within ten business days orlonger (as indicated by the lender) after the Loan Estimate Disclosure was provided. No otherjustification is necessary. [Commentary to §1026.19(e)(3)(iv)(E) #1]7.Interest Rate Dependent Charges (Rate Lock Event): [§1026.19(e)(3)(iv)(D)]If the interest rate was not locked when the Loan Estimate Disclosure was provided a revised versionMUST be provided when the interest rate is subsequently locked. This is required even if the interestrate dependent charges do not change as a result of the lock.8.Delayed Settlement Date on a New Construction Loan: [§1026.19(e)(3)(iv)(F)]In transactions involving new construction (under or yet to be constructed NOT a remodel or homeimprovement project), where the creditor reasonably expects that settlement will occur more than 60 daysafter the Loan Estimate is provided. the creditor may provide revised disclosures to the consumer ifthe original disclosures state clearly and conspicuously that at any time prior to 60 days beforeconsummation, the creditor may issue revised disclosures. If no such statement is provided, the creditormay not issue revised disclosures, except as otherwise provided A home is not under construction if a use and/or occupancy permit was issued prior to delivery of the LoanEstimate Disclosure.F.Changed Circumstances(s) Total 10% Cumulative Sum Tolerance:If a valid changed circumstance occurs but does not cause the cumulative sum of all 10% tolerancecharges to exceed the 10% threshold, a revised Loan Estimate Disclosure is not permitted. For example:An unreleased lien is discovered and the title company must perform additional work to release the lien.However, the additional costs amount to only a five percent increase over the sum of all fees included in thecategory of fees, which may not increase by more than 10 percent. A changed circumstance has occurred (i.e.,new information), but the sum of all costs subject to the 10 percent tolerance category has not increased bymore than 10 percent. the actual title fees of 500 may not be compared to the revised title fees of 500; theymust be compared to the originally estimated title fees of 400 because the changed circumstance did not causethe sum of all costs subject to the 10 percent tolerance category to increase by more than 10 percent.[Commentary to §1026.19(e)(3)(iv)(A) #1(ii)]Banker’s Compliance Consulting1-800-847-16537

TRIDG. Delivery [§1026.19(e)(4)(ii)] and Timing: [§1026.19(e)(4)(i)]A revised Loan Estimate Disclosure CANNOT be provided (in person or by mail) at the same time as orafter the Closing Disclosure is provided.1.General:Generally, a revised Loan Estimate Disclosure must be provided within three business days (general) ofreceiving information sufficient to establish a valid changed circumstance. For example, if informationsufficient to establish a valid changed circumstance is received on Monday, a revised Loan EstimateDisclosure must be provided (in person or by mail) by Thursday.2.Cumulative 10% Tolerance Overage Date:However, if there are multiple changed circumstances that occur but do not individually exceed the10% tolerance, a revised Loan Estimate disclosure cannot be provided (in person or by mail) untilreceipt of the changed circumstance causing the cumulative sum of all 10% tolerance charges toexceed 10%. The revised disclosure must be provided within three business days (general) of thatevent.For example, a creditor receives information on Monday that, because of a changed circumstance thetitle fees will increase by an amount totaling six percent of the originally estimated settlement charges The creditor had received information three weeks before that, because of a changed circumstance thepest inspection fees increased by an amount totaling five percent of the originally estimated settlementcharges Thus, on Monday, the creditor has received sufficient information to establish a valid reason forrevision and must provide revised disclosures reflecting the 11 percent increase by Thursday to comply [Commentary to §1026.19(e)(4)(i) #1(ii)]3.Rate Lock Event:No later than three business days (general) after the date the interest rate is locked, the creditor shallprovide a revised version of the disclosures [Commentary to §1026.19(e)(3)(iv)(D)]Banker’s Compliance Consulting1-800-847-16538

TRIDH. Receipt: [§1026.19(e)(4)(ii)]The consumer must receive a revised version of the disclosures not later than four business days (precise)prior to consummation.1.In Person Now2.Mail:If the revised version of the disclosures is not provided to the consumer in person, the consumer isconsidered to have received such version three business days (precise) after the creditor delivers or placessuch version in the mail.I.Documentation: [Commentary to §1026.19(e)(3)(iv) #3]If a revised Loan Estimate Disclosure is provided due to a changed circumstance the reason for the revisionmust be documented. Documentation must include the original estimated cost, reason for the revision;how the revision affected the cost(s) and that the timing requirements were met.Banker’s Compliance Consulting1-800-847-16539

TRIDIII. Revising the Closing Disclosure: [§1026.19(f)(2)]A. Inaccurate Closing Disclosure:PageIf a Closing Disclosure (already provided) becomes inaccurate before consummation, the creditorshall 10-12(must) provide corrected disclosures reflecting any changed terms to the consumer [§1026.19(f)(2)(i)]III. Revising the Closing DisclosureClosing Disclosure“Actual Terms”RevisedClosing DisclosureIdentification ofNew Information& / or a Change“In Hand”No Later Than 3 DaysBefore Loan ClosingDESIR EV“In Hand”At or Before*Loan Closing!32Banker’s Compliance Consulting1-800-847-165310

TRIDB. Closing Disclosure Accuracy:The lender must exercise due diligence in providing the consumer with a Closing Disclosure that reflects the“actual terms” of the transaction based on the best information reasonably available. [§1026.19(f)(1)(i) andCommentary to 1026.19(f)(1)(i) #2)]1.Best Information Reasonably Available – Due Diligence Expectation: the creditor must at a minimum utilize generally accepted calculation tools. The creditor normally mayrely on the representations of other parties in obtaining information. For example, the creditor might lookto the consumer for the time of consummation, to insurance companies for the cost of insurance, to realtorsfor taxes and escrow fees, or to a settlement agent for homeowner's association dues or other information inconnection with a real estate settlement. [Commentary to §1026.19(f)(1)(i) #2(i)]2.Actual Terms Unknown:If an actual term is unknown, the creditor may utilize estimates using the best information reasonablyavailable in making disclosures even though the creditor knows that more precise information will beavailable at or before consummation. However, the creditor may not utilize an estimate without exercisingdue diligence to obtain the actual term for the consumer's transaction. [Commentary to §1026.19(f)(1)(i)#2 (ii)]Page 10-12C. Caution! Delivering Closing Disclosures Too Early:C. Issuing the CD Too Early the Bureau believes that the TRID rules should prevent creditors from sending Closing Disclosuresvery early in the process before engaging in due diligence to ensure that any costs that are not finalized areestimated in good faith. [Federal Register 5/2/18 – Page 19169]XXXActual CDDeliveryTRID CD Due Diligence ZoneTRID CD Due Diligence ZoneTRID 3-Day Mailbox RuleScheduledClosingTRID 3-Day Closing DelayBanker’s Compliance Consulting1-800-847-1653CD 7-DayMailingDeadline11!35

TRIDD. Resetting Tolerances With a Closing Disclosure (i.e. Valid Changed Circumstance):Creditors may provide consumers with a revised Closing Disclosure reflecting any charges resulting froma valid changed circumstance and rely on those figures (rather than the amounts disclosed on the LoanPage245-247Estimate) for purposes of determining “good faith” and the applicable tolerance. Anyreviseddisclosuremust be provided within three business days (general) of the valid changed circumstance. [§1026.19(e)(4)]D. Resetting Tolerances With a CD“In Hand”No Later Than 4 DaysBefore Loan Closing“In Hand”No Later Than 3 DaysBefore Loan ClosingDeliveredNo Later Than 3 DaysAfter the EventLast RevisedLoan EstimateClosing DisclosureRevisedClosing DisclosureWith ChangesRevised Loan Estimates No Longer Allowed!!37Banker’s Compliance Consulting1-800-847-165312

TRIDE. Review: [§1026.19(f)(2)(i)]The borrower must be allowed to review the (revised) Closing Disclosure on the business day (general)before consummation. The Closing Disclosure should be completed based upon those items that are known tothe creditor at that time.F.Receipt: [§1026.19(f)(2)(i)]If the Closing Disclosure becomes inaccurate prior to consummation a revised Closing Disclosure must bereceived by the borrower at or before consummation.G. Three-Day Waiting Period: [§1026.19(f)(2)(ii)]Any of the following changes will require a revised Closing Disclosure to be received by the borrower notless than three business days (precise) prior to consummation:1. Loan Product Change (i.e., Fixed Rate vs. Adjustable Rate Product or 3/1 ARM vs. 5/1 ARM)[§1026.38(a)(5)(iii)]2. Inaccurate APR: [§1026.22 & §1026.38(o)(4)]a.Regular Transactions – More than 0.125% above or below disclosed APR.b.Irregular Transactions – More than 0.25% above or below the disclosed APR:i.Multiple Advance (construction loans).ii.Irregular Payment Schedules (to accommodate seasonal incomes).iii. Irregular Payment Amounts.3.Prepayment Penalty Added [§1026.37(b)(4) & §1026.38(b)]Banker’s Compliance Consulting1-800-847-165313

TRIDH. Post-Consummation Revisions: [§1026.19(f)(2)(iii)]A revised Closing Disclosure must be provided to the borrower in the event of a change that causes theClosing Disclosure to become inaccurate (amount actually paid by the borrower vs. amount disclosed).1. Revision Timeframe:Changes that occur within 30 days after consummation.2. Revised Disclosure Timing: the creditor shall deliver or place in the mail corrected disclosures not later than 30 days after receivinginformation sufficient to establish that such event has occurred.I.Non-Numeric Clerical Errors: [§1026.19(f)(2)(iv)]Non-numeric clerical errors may be corrected by delivering or mailing a revised Closing Disclosure no later than60 days after consummation. Clerical errors are those that do not affect any numerical disclosure (i.e. amount ofany fee) or delivery of the Loan Estimate or Closing Disclosure (i.e., mailing address).J.Per Diem Interest Changes Post Consummation:A creditor is not required to provide corrected disclosures if the only changes that would be required to bedisclosed in the corrected disclosure are changes to per-diem interest and any disclosures affected by thechange in per-diem interest, even if the amount of per-diem interest actually paid by the consumer differs fromthe amount disclosed [Commentary to §1026.19(f)(2)(iii) #2]Nonetheless, if a creditor is providing a corrected disclosure for reasons other than changes in per-dieminterest and the per-diem interest has changed as well, the creditor must disclose the correct amount of theper-diem interest and provide corrected disclosures for any disclosures that are affected by the change in perdiem interest. [Commentar

revised disclosures even though the sum of all costs subject to the 10 percent tolerance category has not increased by more than 10 percent. However, the revised disclosure cannot be used to determine. either the 0% or 10% . tolerances. [Commentary to §1026.19(e)(3)(iv) #4] C. Revised

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