October 4, 2018 at 12:14 pm #13369
With regards to a revised LE and the expiration date for closing costs, scenario: You have an application in which LE was sent out with 10 business day expiration, applicant DID NOT give intent to proceed but in visiting with them (after 10 business days have lapsed) you have a valid changed circumstance and a revised LE needs to be sent. Do you issue a revised LE and bump your expiration date for closing costs another 10 business days since intent to proceed has not been received? Same scenario but you are within the 10 business days, do you leave the original date or give another 10 business days?October 9, 2018 at 9:53 am #13384
If the LE was issued but the applicant never gave intent to proceed before the expiration date you can issue a revised estimate of charges leaving the date the same – there is no requirement to change the date. You may extend the date if you choose. This would be the same if you are within the original 10 day timeframe.
If the applicant has given intent to proceed then on any revised LE’s you would leave the expiration date/time blank.
2. Expiration date. The disclosure required by § 1026.37(a)(13)(ii) related to estimated closing costs is required regardless of whether the interest rate is locked for a specific period of time or whether the terms and costs are otherwise accepted or extended. If the consumer fails to indicate an intent to proceed with the transaction within 10 business days after the disclosures were originally provided under § 1026.19(e)(1)(iii) (or within any longer time period established by the creditor), then, for determining good faith under § 1026.19(e)(3)(i) and (ii), a creditor may use a revised estimate of a charge instead of the amount originally disclosed under § 1026.19(e)(1)(i). See comment 19(e)(3)(iv)(E)-2.
1026.37(a)(13)-4 states: 4. Revised disclosures. Once the consumer indicates an intent to proceed within the time specified by the creditor under § 1026.37(a)(13)(ii), the date and time at which estimated closing costs expire are left blank on any subsequent revised disclosures. The creditor may extend the period of availability to expire beyond the time disclosed under § 1026.37(a)(13)(ii). If the consumer indicates an intent to proceed within that longer time period, the date and time at which estimated closing costs expire are left blank on subsequent revised disclosures, if any. See comment 19(e)(3)(iv)-5.November 14, 2018 at 4:04 pm #13641
What if the revised LE was only issued as a courtesy LE (not resetting tolerance), would the dates change at all if no intent to proceed had been received?
Courtesy LE, within original 10 business day expiration time frame and no intent to proceed – would we leave the date the same as the original LE or bump it another 10 days?November 15, 2018 at 12:13 pm #13654
There is no requirement that you change the date so I would not recommend it.
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