Question

For the purpose of issuing a revised Loan Estimate, "changed circumstances" must involve a change that caused estimated amounts to increase by at least:

a: 1%
b : Any amount
c: 5%
d: 10%

Answer 1

Changed circumstances must cause estimated amounts to increase by at least 1% for a revised Loan Estimate.

Step-by-step explanation:

The Loan Estimate is a document provided to consumers by mortgage lenders in the United States as part of the mortgage application process. It is designed to help borrowers understand the key terms and costs associated with a mortgage loan. The Loan Estimate is mandated by the Consumer Financial Protection Bureau (CFPB) under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

For the purpose of issuing a revised Loan Estimate, "changed circumstances" must involve a change that caused estimated amounts to increase by at least 1%. This means that the estimated amounts must increase by 1% or more from the original estimate in order to trigger a revised Loan Estimate.