Corrected Loan Estimate showing updated terms or charges after a permitted revision reason occurs before closing.
A revised Loan Estimate is a corrected Loan Estimate showing updated terms or charges after a permitted revision reason occurs before closing.
A revised Loan Estimate helps a borrower track changes before closing, but its compliance effect is narrower than its appearance suggests. A creditor can send an informational update whenever figures change. The newer amounts replace the original fee-comparison baseline only when Regulation Z permits the revision and the disclosure is timely.
Permitted reasons include a defined Changed Circumstance affecting settlement charges, a change affecting eligibility, a consumer-requested revision, a later rate lock, expiration of the original estimates, and certain delayed construction-loan settlements.
The creditor can use a revised amount only to the extent the permitted reason actually caused the affected charge to increase. One changed item does not create permission to reset every fee in the transaction.
Borrowers encounter a revised Loan Estimate between the original estimate and the Closing Disclosure. Common triggers include newly verified property information, a borrower-requested product change, or locking the interest rate after the original estimate.
When a revised document arrives, compare it line by line with the prior version rather than looking only at cash to close. A lower lender credit, higher rate-dependent charge, changed loan amount, or newly estimated service can affect the transaction in different ways.
| Check | Borrower question |
|---|---|
| Issue date | Was the revision sent promptly after the creditor learned of the change? |
| Rate-lock status | Did the rate, points, and lender credits update together when the rate was locked? |
| Loan terms | Did the loan amount, product, payment, or prepayment feature change? |
| Changed fee | Which specific event caused this amount to move? |
| Cash to close | Did deposits, credits, loan amount, or costs cause the total change? |
| Prior versions | Which amount is the valid baseline for each tolerance category? |
Keep every version. A later comparison may require the original Loan Estimate, one or more valid revisions, and the final Closing Disclosure.
When a creditor relies on a permitted revision reason to reset a tolerance baseline, it generally must provide the corrected disclosure within three business days after receiving information sufficient to establish that reason.
The consumer generally must receive the revised Loan Estimate no later than four business days before Consummation. A creditor cannot provide a revised Loan Estimate on or after the date it provides the Closing Disclosure. If a permitted change arises too late, the updated information may instead appear on a corrected Closing Disclosure.
These timing rules do not mean every revised Loan Estimate creates a new waiting period before closing. The separate Closing Disclosure Waiting Period concerns receipt of the Closing Disclosure, and only specified major Closing Disclosure corrections restart that three-business-day period.
| Term | What it answers for the borrower |
|---|---|
| Loan Estimate | What were the early projected terms and costs? |
| Revised Loan Estimate | What changed before the final disclosure, and which new estimates may be used? |
| Changed Circumstance | Did one defined new fact permit revision? |
| Closing Disclosure | What are the near-final terms and charges before consummation? |
| Tolerance Cure | What corrects charges that exceeded the valid limit? |
A borrower receives an unlocked Loan Estimate showing a tentative rate and lender credit. Five days later, the borrower locks the rate. The creditor sends a revised Loan Estimate within three business days showing the locked rate, points, lender credits, and other rate-dependent terms.
The revision can establish the rate-dependent comparison amounts. It does not automatically reset an unrelated appraisal fee that increased for no permitted reason.
In another file, a borrower requests a larger loan amount. The resulting revision is based on the consumer-requested change category, not automatically on a defined changed circumstance. The disclosure should reflect the requested transaction change and charges it actually affects.
A creditor may issue a revised disclosure to keep the borrower informed even when the newer amounts cannot be used for the good-faith comparison. This distinction matters at closing:
Receiving the form proves that an update was delivered. It does not by itself prove that every increased charge is permitted.
A revised Loan Estimate differs from the original Loan Estimate because the original form establishes the early estimates, while a revision updates them after a later event.
It differs from a Changed Circumstance. Changed circumstance is one reason revision may be allowed; the revised Loan Estimate is the document. Other permitted reasons can also support revision.
It differs from the Closing Disclosure. A revised Loan Estimate belongs to the estimate stage and cannot be issued once the Closing Disclosure has been provided.
It differs from a Tolerance Cure. A valid revision may establish a new baseline before a violation exists; a cure refunds an excess over the baseline that controls.