The Loan Estimate form is generally "binding" — meaning lenders have careful guidelines about meeting the estimates. Revisions of a Loan Estimate are only permitted under defined changes of circumstances. These circumstances include: Extraordinary events that are beyond the control of the borrower or lender Changes or inaccuracies uncovered in the information used by the lender in preparing the Loan Estimate New information identified on the borrower or the transaction Other circumstances that might apply are: Interest rates were NOT locked, and applicable new rates change points or lender credits Settlement delay on new construction loans — typically a 60-day window Borrower requests loan term revisions Borrower waits more than 10 days after the Loan Estimate before deciding to proceed with the loan. If these circumstances affect borrower eligibility or the value of the loan security (such as the property), or increase settlement charges beyond legal tolerance limits, a revised Loan Estimate may be issued.

Final mortgage costs may differ from the loan estimate, but the differences are defined by legal tolerances for some cost categories. For items limited to 10% change tolerance — recording-services charges and non-shoppable 3rd-party services — amounts paid over the Loan Estimate for these categories must be refunded. For all other items, including the services which a borrower is allowed to shop, differences between payment and closing, and Loan Estimate, are not refundable. The lender must arrange refunds within 60 calendar days (NOT business days) of loan consummation.

A mortgage Loan Estimate is just that — an estimate. Your actual loan costs might be higher or lower than the estimate, within certain legally-specified limits for some items, and without defined limits for others. Items with a 10% change limit include: Charges for recording services 3rd-party services on the list provided by the lender Items which might change without legally-defined tolerances: Prepaid Interest Property Insurance Premiums Escrow or Reserve Deposits Items with ZERO tolerance, that should not change: Transfer taxes Fees paid to the lender Fees paid to a mortgage broker, or to affiliates of the lender or the broker. Fees paid to any 3rd parties on the "CAN NOT SHOP" list provided on the Loan Estimate. Compare the Loan Estimate and the Closing Disclosure before loan consummation.

Lenders supply a Loan Estimate form for valid mortgage applications. This form documents these essential elements of the approved loan: Services borrowers CAN shop in relation to the loan Services borrowers CANNOT shop Loan terms Loan costs Project payments Cash and costs required to close the loan A loan summary to aid comparing this estimate to other estimates. Loan Estimate forms also provide details about loan assumption policies, appraisal, insurance, late-payment policies, and refinancing. The Estimate should also disclose whether the lender intends to service the loan directly. All Loan Estimates are not identical. Information that is NOT related to a specific application may be excluded. Careful reading and comparison is always a good practice.

Lenders are required to store transaction records for a number of years. The period differs based on the documents. Escrow Cancellation: 2 years Partial Payment Policy Disclosures: 2 years Loan Estimates: 3 years after loan consummation Closing Disclosures: 5 years after loan consummation If the loan is sold — for example, to a different company for loan servicing — the original lender is only required to provide a copy of the Closing Disclosure to the new owner. Both companies must retain this information, for the remainder of the 5-year period. While digital record storage is common, it is not legally required. The guidelines set for lenders under the TRID regulations do not affect consumer behavior; consumers can keep disclosure records as long as they see fit. .

For mortgage applications, the term business day is used in setting the period of time lenders have to return 2 key forms that document the loan status. The definition is NOT consistent, though! Loan Estimates, which are a required response for approved loans, are due back to the applicant within 3 business days. In this case, "business day" is every day on which a financial institutions workplaces are open to the general public. If a particular lender is always closed on Thursday, their deadline might be different from that of another lender. Closing Disclosures must be supplied 3 days prior to consummation of the loan, but in this case, "business day" is defined on a common calendar: all calendar days except Federal public holidays, plus Sundays. In short, all lenders work from the same calendar for Closing Disclosures.

If the loan you requested is authorized by the lender, on the terms you asked for, a Loan Estimate must be returned to you in 3 business days. However, if the lender decides that the loan is not approved, they do not need to supply the Loan Estimate form. In addition, if you withdraw the mortgage application within the 3-day period, they do not have to supply the Loan Estimate. Bottom line — if a loan is approved and the lender does not provide the Loan Estimate in 3 business days, the lender is not remaining compliant with TRID Regulation Z.