“Good faith” is an important concept when it comes to providing TRID disclosures, such as the Loan Estimate and Closing Disclosure. The Commentary to §1026.19(e)(1)(i) #1 states the Loan Estimate …must be provided in good faith…if any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure based on the best information reasonably available to the creditor at the time the disclosure is provided to the consumer. The “reasonably available” standard requires that the creditor, acting in good faith, exercise due diligence in obtaining information. In other words, anytime you send a disclosure out the door, it should be based on the best information you have available to you at the that time. This is especially critical any time you have a changed circumstance. If you have new information that is not reflected in the revised disclosure provided to the applicants, problems can arise.
Jerod explains more in the video.
Published 2026/03/12
