Federal Mortgage LawsQuestion 20 of 400
Under TRID tolerance rules, which category of charges generally may NOT increase at all from the Loan Estimate to the Closing Disclosure (a zero-tolerance category)?
a.Prepaid interest and property insurance premiums
b.Services the borrower shops for from an unaffiliated provider
c.The lender's own origination charges and transfer taxes
d.Recording fees
Explanation
Fees paid to the lender or broker, such as origination charges, and government transfer taxes are subject to zero tolerance and generally cannot increase without a valid change of circumstance. Prepaids and certain third-party services the borrower shops for fall in other tolerance categories. Recording fees fall under a 10% aggregate tolerance, not zero tolerance.
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