Origination ActivitiesQuestion 194 of 400
Transfer taxes disclosed on the Loan Estimate are subject to which tolerance?
a.Zero tolerance
b.10 percent tolerance
c.No tolerance
d.15 percent tolerance
Explanation
Transfer taxes are in the zero tolerance category, meaning the amount charged at closing generally cannot exceed the amount disclosed on the Loan Estimate. Transfer tax rates are set by law, so the creditor is expected to disclose them accurately.
Law Reference: TRIDPractice all 400 questions free — no signup required.
Related questions on this topic
- 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?
- After the Closing Disclosure is issued, which change requires a new three-business-day waiting period before consummation?
- Which post-CD change does NOT trigger a new three-business-day waiting period?
- A new three-business-day waiting period after the Closing Disclosure is required in all of the following EXCEPT:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review