Q: What is the general accuracy requirement for the Loan Estimate disclosures?
A: Creditors are responsible for ensuring that the figures stated in the Loan Estimate are made in good faith and consistent with the best information reasonably available to the creditor at the time they are disclosed. (§§ 1026.17(c)(2)(i); 1026.19(e)(3) and Comments 19(e)(3)(iii)-1 through -3)
Whether or not a disclosure included in the Loan Estimate was made in good faith is determined by calculating the difference between the estimated charge or charges originally provided in the Loan Estimate and the actual charge or charges paid by or imposed on the consumer in the Closing Disclosure. (§§ 1026.19(e)(3)(i) and (e)(3)(ii)). For more information about what charges are paid or imposed on the consumer, see section 13.6 below.
Generally, if the charge paid by or imposed on the consumer exceeds the amount originally disclosed on the Loan Estimate, it is not in good faith, regardless of whether the creditor later discovers a technical error, miscalculation, or underestimation of a charge. A disclosure on the Loan Estimate is considered to be in good faith if the creditor charges the consumer less than the amount disclosed on the Loan Estimate, without regard to any tolerance limitations.
Note: If a creditor decreases a charge on a revised Loan Estimate, Closing Disclosure, or corrected Closing Disclosure, the creditor is not required to use the decreased estimate for purposes of determining good faith, but instead may rely on the amount originally disclosed.