Explain what should have happened when the change was made that resulted in the higher APR and describe the circumstances that made this change allowable under TRID rules.
Understand the Problem
The question is asking for an explanation of the increase in APR related to a change from a twenty-year to a thirty-year loan, as well as the conditions under which this change complies with TRID regulations. The problem involves understanding how changes in loan terms and costs impact the APR calculation and what rules govern such changes.
Answer
A revised Loan Estimate must be issued if a change leads to a higher APR, allowable due to TRID 'changed circumstances'.
Under the TRID rules, if a change in loan terms results in a higher APR, the lender must issue a revised Loan Estimate discovering the 'changed circumstance'. Such a change is allowable when events like rate-lock changes, borrower-requested changes, or prescribed extraordinary events occur.
Answer for screen readers
Under the TRID rules, if a change in loan terms results in a higher APR, the lender must issue a revised Loan Estimate discovering the 'changed circumstance'. Such a change is allowable when events like rate-lock changes, borrower-requested changes, or prescribed extraordinary events occur.
More Information
The TRID rule allows for certain changes that can affect loan terms, and these changes must be documented with revised estimates to ensure compliance and transparency.
Tips
A common mistake is failing to promptly issue a revised Loan Estimate after a change, which can lead to compliance issues.
Sources
- What is a Changed Circumstance Under TRID - Compliance Cohort - compliancecohort.com
- Refresher on triggering events impacting the revised loan estimate - wolterskluwer.com
- Allowable Changes in Circumstances under TRID - b-Logics - blogics.loanlogics.com
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