What event triggers the need for an "Adjusted Loan Estimate"?

An "Adjusted Loan Estimate" is necessary when there are changes to the loan terms or other costs that affect the loan estimate. This requirement ensures that borrowers receive up-to-date information about the costs associated with their mortgage, allowing them to make informed decisions. When there are variations such as alterations in the interest rate, type of loan, or other fees associated with the mortgage, these changes must be reflected in an updated estimate to maintain transparency and compliance with the regulatory standards established by the Consumer Financial Protection Bureau (CFPB). This process helps protect consumers by ensuring they are aware of any potential increases in costs or modifications in their loan agreement, which can significantly influence their financial obligations.

The other options involve scenarios that do not automatically trigger an Adjusted Loan Estimate. For instance, while a borrower might request a change, this does not always guarantee a different estimate is necessary unless those changes affect the terms of the loan or its costs. Additionally, a lender's decision to increase fees does not automatically warrant a new estimate unless these increases also correlate with a change in terms. Lastly, if a borrower is denied, it does not pertain to an adjustment of the loan estimate since the estimate only applies when a loan is being processed, not after a denial.