My bank issued a Loan Estimate (LE) for a loan subject to the Truth in Lending Act (Regulation Z) that expired before the consumer provided the intent to proceed. The bank discovered two fees that had accidentally been omitted from the original LE.
Q Since the customer did not provide the intent to proceed prior to the expiration of the LE, may the bank provide a revised LE and include the accidentally omitted fees?
A Yes. If the intent to proceed is received after the expiration date, the bank may change and/or add any fees at its discretion and redisclose within 3 business days of discovery of the changed circumstance, which in this instance would be the expiration of the LE.
See comment 1 to §1026.19(e)(3)(iv)(E) and §1026.19(e)(4)(i).
For more information, contact ABA’s Rhonda Castaneda.
Please note that this section is not a substitute for professional legal advice.
