What is required for a loan originator to provide a revised Loan Estimate?

A loan originator is required to provide a revised Loan Estimate when there are documented reasons for the revision. These documented reasons often pertain to changes that materially affect the loan terms or the cost of the loan. For instance, if the borrower has opted for a different loan program, if there are changes in the loan amount, or if there are modifications in the interest rate, these necessitate an updated Loan Estimate to ensure that the borrower fully understands the terms and their financial obligations.

While it may seem that other conditions, such as changes in loan terms, could justify a revision, they are typically a subset of broader documented reasons. The loan originator must have clear documentation of why the estimate is being revised, which not only helps maintain compliance with regulatory requirements but also protects the borrower by providing clear and accurate information.