Under the 3/7/3 rule, the lender may issue another Loan Estimate if there is a qualified change of circumstance.

Under the 3/7/3 rule, the lender may issue another Loan Estimate if there is a qualified change of circumstance.

• A. True
• B. False
• C. Only with borrower consent
• D. Only for rate changes

Answer: (A)

When a Qualified Change of Circumstance occurs, the lender is allowed to re-disclose by issuing a new Loan Estimate. This reflects TRID rules that require the loan estimate to stay accurate if new information changes the terms, costs, or charges of the loan. The 3/7/3 timing is about these re-disclosures and the associated waiting periods: once the lender learns of the QCC, they must issue a revised LE within three business days, and the borrower typically has a seven business day waiting period before closing to review the updated terms (with certain exceptions). This mechanism ensures the borrower isn’t surprised by updated costs as the loan progresses. Why the other ideas don’t fit: this isn’t limited to borrower consent for a re-disclosure, and the change isn’t restricted to rate changes—any qualifying change that affects terms or settlement charges can trigger a new LE.

When a Qualified Change of Circumstance occurs, the lender is allowed to re-disclose by issuing a new Loan Estimate. This reflects TRID rules that require the loan estimate to stay accurate if new information changes the terms, costs, or charges of the loan. The 3/7/3 timing is about these re-disclosures and the associated waiting periods: once the lender learns of the QCC, they must issue a revised LE within three business days, and the borrower typically has a seven business day waiting period before closing to review the updated terms (with certain exceptions). This mechanism ensures the borrower isn’t surprised by updated costs as the loan progresses.

Why the other ideas don’t fit: this isn’t limited to borrower consent for a re-disclosure, and the change isn’t restricted to rate changes—any qualifying change that affects terms or settlement charges can trigger a new LE.