When a valid changed circumstance occurs, it may cause the regulatory tolerances to be exceeded. Issuing a revised LE allows the institution to “reset” the tolerances based on the new information. There are, however, times when a valid changed circumstance does not result in the regulatory tolerances being exceeded and, in this case, an institution has a couple of options. The first is to not do anything. The second is to provide an “information only” revised LE. These are often provided as a customer service to keep the applicant aware of any changes, but it’s important to note that these LEs are not required and do not help an institution from a tolerance perspective. Additionally, if you make a mistake on an information only LE, it can be used against you.
Jerod explains more in the video.
Published
2024/02/20
