What must be done if an event post-consummation makes the closing disclosure inaccurate?

When an event post-consummation occurs that renders the Closing Disclosure inaccurate, providing a corrected Closing Disclosure is essential. This step is crucial because the Closing Disclosure must accurately reflect the terms and conditions of the loan.

A corrected Closing Disclosure ensures that both the borrower and the lender have clear and updated information about the loan. This is important not only for compliance with the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) but also to maintain transparency and trust in the lending process. Any inaccuracies can potentially lead to misunderstandings or disputes about loan terms, so timely correction is vital.

While notifying the borrower is important and may be part of the process, it does not replace the need to issue a corrected document. Likewise, waiting 30 days or reissuing the loan documents are not appropriate responses, as they do not address the immediate need to correct the information provided in the Closing Disclosure. Therefore, providing a corrected Closing Disclosure is the most direct and effective way to resolve inaccuracies that arise after loan consummation.