Origination ActivitiesQuestion 192 of 400
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.Zero tolerance
b.10 percent cumulative tolerance
c.No tolerance
d.A separate transfer-tax tolerance
Explanation
When the consumer shops for a service and selects a provider that is not on the creditor's written list, that charge is in the 'no tolerance' category. Because the consumer went off-list, the creditor's estimate is not held to a strict tolerance for that charge.
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Related questions on this topic
- Which charge is subject to a zero percent tolerance (cannot increase from the LE to the CD)?
- Which fee falls under the 10 percent cumulative tolerance category?
- Which of the following is generally subject to NO tolerance limitation (may change without violating good faith)?
- A borrower selects a pest-inspection provider FROM the creditor's written list of service providers. That charge is subject to which tolerance?
- Transfer taxes disclosed on the Loan Estimate are subject to which tolerance?
- After the Closing Disclosure is issued, which change requires a new three-business-day waiting period before consummation?
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