Here is a comprehensive list of common questions a mortgage loan officer might ask their broker regarding the Loan Estimate (LE), along with explanations for each:

🔍 1. What triggers the issuance of a Loan Estimate?

Explanation:
The LE must be provided within 3 business days of receiving a complete application (name, income, SSN, property address, estimated value, and loan amount). Loan officers want to understand what constitutes a “complete application” under TRID (TILA-RESPA Integrated Disclosure).

🕒 2. When is the latest I can send the LE without violating TRID?

Explanation:
This clarifies the 3-business-day rule after receiving a complete application and helps the LO avoid compliance issues and penalties.

🧾 3. Can I issue a Loan Estimate before we identify a property?

Explanation:
Some LOs want to “pre-disclose,” but TRID prohibits issuing a formal LE until a property address is provided. Until then, they can give a worksheet or fee estimate, but not a binding LE.

🔄 4. When am I allowed to issue a revised Loan Estimate?

Explanation:
LE revisions are allowed only under a “valid change of circumstance”, such as:

• Appraisal comes in low
• Rate lock changes
• Borrower requests program changes
  Understanding this helps the LO stay compliant.

💵 5. Which fees are subject to 0% tolerance and cannot change?

Explanation:
This helps the LO avoid misquoting:

• 0% tolerance: Lender/broker fees, third-party services the borrower cannot shop for (e.g., credit report, appraisal ordered by lender).
• Changes to these can trigger cure or re-disclosure.

📉 6. How should I quote title fees or escrow if we let the borrower shop?

Explanation:
If the borrower can shop, the LO must provide a Written List of Providers (WLP). LOs want to know how quoting lower-than-actual fees can affect 10% tolerance buckets.

💬 7. Can I email or upload the LE, or does it need to be signed?

Explanation:
Delivery must meet “receipt” rules:

• E-signed or acknowledged (with consent to e-delivery) = delivered when accessed
• If mailed = considered received in 3 business days
  Signatures are not required, but proof of delivery is.

📊 8. How do I explain the “Cash to Close” section to the borrower?

Explanation:
This section confuses many borrowers. LOs may ask how to clarify:

• Down payment + closing costs – credits = Cash to Close
  They also want guidance on how seller credits or lender credits show here.

🔄 9. Can I reissue the LE if the borrower changes the loan amount or program?

Explanation:
Yes, that’s a valid change of circumstance, but only if it is borrower-initiated. The LO must reissue within 3 business days of learning the change.

🔐 10. What happens if the LE is wrong and not redisclosed?

Explanation:
LOs want to understand tolerance cures and potential financial liability for fees that exceed allowed tolerances, especially in the 0% and 10% categories.

🗂️ 11. Who prepares and issues the LE—me, the processor, or the lender?

Explanation:
Depends on company structure. The LO must know whether they are responsible for issuing it directly or whether disclosures are handled centrally (like by compliance or processing).

📅 12. When does the 7-day waiting period start for closing?

Explanation:
The borrower must receive the LE at least 7 business days before closing. This helps LOs schedule closing timelines appropriately.

📈 13. How does rate lock affect the LE?

Explanation:
When a rate is locked, a new LE must be issued within 3 business days reflecting the lock terms. LOs often ask how to handle changes in points, pricing, and credits.

🧮 14. How do I estimate prepaid items and escrows accurately?

Explanation:
LOs want to avoid under-disclosing. These include:

• Daily interest
• Homeowners insurance premium
• Property taxes
  Misquoting these can lead to compliance issues or borrower frustration.

⚠️ 15. What if we use the wrong title company fees—will I be liable?

Explanation:
Yes, if the borrower wasn’t allowed to shop or if the quote was inaccurate without a valid change of circumstance. Brokers must monitor third-party fees carefully.

📝 16. Can I explain LE fees verbally to the borrower beyond the form?

Explanation:
Yes, and it’s encouraged—just don’t contradict the form. LOs often ask how to clarify in plain language what’s listed on the LE.

📉 17. What if the borrower backs out—am I required to refund the appraisal fee?

Explanation:
Generally no, if the appraisal was already ordered and disclosed properly. But refund policies vary, and LOs often want to confirm company policy.