Origination ActivitiesQuestion 206 of 400
If the creditor allows the consumer to shop for a service but fails to provide the required written list of providers, the charge for that service is generally treated under which tolerance?
a.10 percent cumulative tolerance
b.No tolerance
c.Zero tolerance always
d.It is exempt from tolerance rules
Explanation
If the creditor permits shopping but fails to provide the required written list, the charge is generally subject to the 10 percent cumulative tolerance, as if the consumer had not been given the opportunity to shop freely. This protects the consumer from the omission.
Law Reference: TRIDPractice all 400 questions free — no signup required.
Related questions on this topic
- Before intent to proceed, the fee a creditor charges to obtain the credit report must be:
- A loan officer collects a $600 appraisal fee from the borrower one hour after issuing the LE but before the borrower says they want to move forward. This is:
- When a creditor permits the consumer to shop for a settlement service, the creditor must provide:
- Which of the following qualifies as a 'changed circumstance' that permits a revised Loan Estimate?
- A revised Loan Estimate is also permitted when:
- When a consumer locks an interest rate after the initial Loan Estimate, the creditor must provide a revised Loan Estimate by when?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review