Q: May a creditor use a revised Loan Estimate if the initial Loan Estimate expires?
A: Yes. If the consumer indicates an intent to proceed with the transaction more than 10 business days after the Loan Estimate was delivered or placed in the mail to the consumer, a creditor may use a revised Loan Estimate. (§ 1026.19(e)(3)(iv)(E); Comment 19(e)(3)(iv)(E)-1). No justification is required for the change to the original estimate of a charge other than the lapse of 10 business days.
The TILA-RESPA Rule identifies 10 business days as the period after which a Loan Estimate expires, and after which a creditor may change the original estimate of a charge without other justification. However, if the creditor voluntarily extends the expiration date beyond 10 business days, either orally or in writing, the extended date is the date that the Loan Estimate expires. Absent a permissible justification for changing the original estimate of a charge (i.e., resetting tolerances), the creditor cannot change the amounts disclosed on the Loan Estimate until the extended expiration date has passed. (Comment 19(e)(3)(iv)(E)-2)
Note: Creditors should count the number of business days from the date the Loan Estimate was delivered or placed in the mail to the consumer, and use the definition of business day that applies for purposes of providing the Loan Estimate. (§ 1026.19(e)(1)(iii) and Comment 19(e)(1)(iii)-1; § 1026.2(a)(6))