A revised loan estimate must be delivered or mailed

A revised Loan Estimate (LE) is a document that lenders are required to provide to borrowers when there is a change to the terms of the loan. According to the Consumer Financial Protection Bureau (CFPB), a revised Loan Estimate must be delivered or mailed to the borrower within three business days of the change.

Here are some scenarios where a revised Loan Estimate may be required:

  1. Changes to the loan terms: If the lender makes changes to the loan terms, such as the interest rate, loan amount, or payment schedule, a revised Loan Estimate must be provided to the borrower.
  2. Changes to the borrower's financial information: If the borrower's financial information changes, such as their income or credit score, a revised Loan Estimate may be required to reflect these changes.
  3. Changes to the property: If there are changes to the property, such as its value or condition, a revised Loan Estimate may be required to reflect these changes.

The revised Loan Estimate must include the following information:

  1. Changes to the loan terms: A clear and concise explanation of the changes to the loan terms, including the effective date of the changes.
  2. New loan terms: The revised loan terms, including the interest rate, loan amount, and payment schedule.
  3. New closing costs: Any changes to the closing costs, including the total amount of closing costs and the breakdown of each cost.
  4. New disclosures: Any new disclosures required by law, such as the Good Faith Estimate (GFE) or the Truth-in-Lending (TIL) disclosure.

The lender must provide the revised Loan Estimate to the borrower in a timely manner, usually within three business days of the change. The borrower has the right to request a revised Loan Estimate at any time during the loan process, and the lender must provide it to them within the required timeframe.