We have a customer that has lowered the amount requested on a loan. The property didn’t appraise for the originally requested amount. There is not a rate locked loan. So my question is do we need to redisclose the gfe and early truth in lending? I’ve been researching this and I don’t believe we would have to redislcose the gfe. However what about the early TIL? I would assume it’s going to be out of tolerance more than the .125% when you compare the early and the final. Would we need to go ahead and redisclose a new early truth in lending and wait the 3 days?
It sounds like you have a changed circumstance. As a result, you may reissue the GFE if you choose, but are not required to do so. If you choose not to you’ll have to abide by the tolerances you’ve disclosed. If you decide to re-disclose the GFE you have 3 days from when you learn of the changed circumstance. Take a look at 12 CFR 1024.7(f).
As for the TIL, if you are out of tolerance you need to re-disclose the initial TIL and wait 3 days after it is delivered to close. Take a look at 12 CFR 1026.22 and 1026.19(a)(2).
Also, you could have some situations like the one you’ve described that are counteroffers. If that happens, make sure to follow your procedures for that process. Counteroffers aren’t required to be written; however, if they aren’t accepted you must send an adverse action notice per Reg B.