The bank receives an appraisal, the appraisal is reviewed and a copy is sent to the borrower. The estimated value on app LE and actual value on the appraisal cause CC and the bank must counteroffer.. Here's where staff disagree. Which is correct?

The bank has 3 business days to counteroffer after it gets the appraisal and LE must be issued within 3 business days if applicants accepts counteroffer. OR

The bank counteroffers after receiving appraisal (no 3 day requirement) and must issue LE within 3 business days if applicant accepts counteroffer.

This one:

The bank counteroffers after receiving appraisal (no 3 day requirement) and must issue LE within 3 business days if applicant accepts counteroffer.

The revised LE only has to be issued if fees subject to tolerances are increased causing them to exceed the allowable tolerances and you want to recoup those charges. Of course a revised informational LE is always allowable as long as it discloses the known fees at that time.

Thanks Dan. Much appreciated.

Does the counteroffer have to occur in 3 business days. Staff quoted this from a 2016 Q & A answered by Compliance Action

ECOA would allow the counteroffer to include several options, such as PMI or lowing the loan amount. If this is to be treated as the same loan application, you would have only three business days to get out the notice, even though ECOA allows 30

Do you have the link? I would need to see the full context of the question and answer before commenting on it.

There is no time limit, other than the Reg. B timing requirements, for the bank to extend a counteroffer. You would however have to provide a copy of the appraisal under 1002.14(a).

Until the counteroffer is extended by the bank and accepted by the applicant there is no changed circumstance.

Then there are the TRID disclosure content and timing requirements for a counteroffer.

There is no such counteroffer timing requirement in TRID that I am aware of.

Making a counteroffer would trigger the TRID LE disclosure which must be sent to the borrower within three business days. Whether this is changed circumstances or a new loan application, the time limit is three business days. The dilemma here is that there are several options for the applicant and only three days to provide a new LE.

I don't agree that a revised LE has to be sent with the counteroffer. Until the counteroffer is accepted there are no changes made to the credit request by the applicant. Once the applicant accepts the counteroffer then there is an applicant requested change to the loan request and that is when the 3 business days to issue a revised LE for the changed circumstance kicks in IMO.

If the applicant declines the counteroffer you send the AAN, if they accept you send the revised LE within 3 business days of their acceptance.

Thanks Dan for helping. I really appreciate it.