I'm looking at a loan file that was a no cash-out refinance. The loan amount had to be lowered so that cash back did not exceed the 2% maximum of the loan amount at closing.

The Underwriter's comment reads: "after looking at the payoff amount for the loan, I am requesting that the loan amount be reduced to keep the cash back to the borrower below the 2% maximum".

Would this be a valid changed circumstance?

If not, I will revert to the original to make my fee tolerance comparisons. Thanks.

Did you redisclose the GFE for the lower loan amount or not?
You didn't have to, even tho it would be a valid changed circumstance if the borrower wanted to continue to qualify for the loan program requested.

Yes, the Good Faith Estimate was re-disclosed with the lower loan amount the same day the Underwriter noted that the 2% maximum cash-out cap would be exceeded.

I understand that we were not required to issue a new GFE in this instance as it is not a rate lock related event. I just wanted to make sure this was a valid changed circumstance.

Thanks Truffle!