Origination ActivitiesQuestion 190 of 400
Which fee falls under the 10 percent cumulative tolerance category?
a.Recording fees
b.The creditor's underwriting fee
c.Transfer taxes
d.Prepaid interest
Explanation
Recording fees, along with charges for third-party services the consumer can shop for when the consumer selects a provider from the creditor's written list, fall under the 10 percent cumulative tolerance. These charges may rise, but only up to 10 percent in the aggregate.
Law Reference: TRIDPractice all 400 questions free — no signup required.
Related questions on this topic
- When a valid changed circumstance justifies a revised Loan Estimate, the creditor must deliver or mail it within how many business days of receiving information sufficient to establish the change?
- A revised Loan Estimate must be received by the consumer no later than how many business days before consummation?
- Which charge is subject to a zero percent tolerance (cannot increase from the LE to the CD)?
- Which of the following is generally subject to NO tolerance limitation (may change without violating good faith)?
- A borrower chooses a title company that is NOT on the creditor's written list of providers. Into which tolerance category does that title service fee fall?
- A borrower selects a pest-inspection provider FROM the creditor's written list of service providers. That charge is subject to which tolerance?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review