Question

A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the broker that they just received revised Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule, what action should the broker take in this situation

Answer 1

Answer: Confirm with the seller's broker, the lender and the closing entity that the closing must be delayed to allow for a new seven-day waiting period because of the interest rate revision.

Explanation:

The TILA-RESPA Integrated Disclosure rule, helps in dictating the information which the mortgage lenders are expectes to give to the borrowers and also when such information must be provided.

Based on the TILA-RESPA Integrated Disclosure rule, the action that the broker should in this situation is for the broker to confirm with the broker of the seller, the lender and also the closing entity that there must be a delay in the closing in order to give room for a new seven-day waiting period due to the revision in the interest rate.