When it comes to determining whether you have a changed circumstance, it comes down to what you knew and when you knew it. For example, if you've done your homework on the appraisers you use and their appraisals range from $300-$500 based on a typical property in your typical lending area, then it's fair to say that you could disclose $500 on the Loan Estimate (LE) when you have applications for a typical property in your typical lending area. But what happens if you know before you issue an LE that it's not a typical property and the appraisal cost likely wouldn't be the same as a typical property? In that case, you should adjust the appraisal amount accordingly before you issue the LE. If you know the property is not typical but issue an LE with the cost for a typical appraisal, that would not be considered a changed circumstance.
Jerod explains more in the video.
Published
2024/03/14