Compliance Question of the Week; Can I provide the member with a new LE if we forgot to list a required fee?

July 10, 2023

The TRID rules state that you cannot issue a revised LE without changed circumstances or a borrower-requested change.

(A) Changed circumstances affecting settlement charges. Changed circumstances cause the estimated charges to increase or, in the case of estimated charges identified in paragraph (e)(3)(ii) of this section, cause the aggregate amount of such charges to increase by more than 10 percent. For purposes of this paragraph, “changed circumstance” means:

1. An extraordinary event beyond the control of any interested party or other unexpected event specific to the consumer or transaction;
2. Information specific to the consumer or transaction that the creditor relied upon when providing the disclosures required under paragraph (e)(1)(i) of this section and that was inaccurate or changed after the disclosures were provided; or
3. New information specific to the consumer or transaction that the creditor did not rely on when providing the original disclosures required under paragraph (e)(1)(i) of this section.

(B) Changed circumstance affecting eligibility. The consumer is ineligible for an estimated charge previously disclosed because a changed circumstance, as defined under paragraph (e)(3)(iv)(A) of this section, affected the consumer’s creditworthiness or the value of the security for the loan.

(C) Revisions requested by the consumer. The consumer requests revisions to the credit terms or the settlement that cause an estimated charge to increase.

Interested in learning more? Questions? Contact the Compliance Hotline: 1.800.546.4465, [email protected]

Posted in Compliance Resources.