True or False: Lender credits should never decrease.
Well, the TRID best practice over the years has said that once a lender credit is listed on the LE, it should never decrease. This philosophy seems to align with that of the CFPB who views a decrease of a lender credit to be the equivalent of an increase of a fee. In fact, the preamble to the final TRID rule states that “lenders are not permitted to reduce the lender credits they provided to the borrower under current Regulation X.”
So, this means that a lender credit should never be reduced, right? Well, not exactly.