Is there a requirement that the closing costs disclosed on the Loan Estimate be made available for a specific time frame? Reg X {1024.7(c)} requires that the GFE terms be made available for at least 10 days, but I can’t find this in Reg Z as it relates to the Loan Estimate.
The “enforcement mechanism” for honoring the cost estimates on the Loan Estimate is contained in the concept of good-faith estimates in section 1026.19(e)(3) and the requirement for “cure” payments to the borrower when the cost increase limits found in that section are exceeded.
The 10-day commitment is set out in the section of 1026.19 dealing with changed circumstances, specifically in .19(e)(3)(iv)(E):
That paragraph gives the lender the ability to “renege” on its original Loan Estimate if the applicant is late in providing an intent to proceed with the offered loan.
It should be noted that unless a consumer rate lock is in place, the lender can change the interest rate on the loan at any time before consummation, even during the 10-day period following delivery of the initial Loan Estimate.
Some lenders have a policy of adhering to estimates for longer than 10 days and have disclosed that policy by making the expiration date (line 2 on the old GFE and in the heading of the Loan Estimate) more than 10 days from the Loan Estimate date. In those cases, they have to provide a corresponding adjustment to their use of 1026.19(e)(3)(iv)(E).
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