Origination ActivitiesQuestion 226 of 400
Amounts placed into an escrow, impound, or reserve account are subject to which tolerance?
a.No tolerance
b.Zero tolerance
c.10 percent tolerance
d.25 percent tolerance
Explanation
Amounts placed into an escrow, impound, or reserve account are in the 'no tolerance' category, meaning they may change from the LE to the CD as long as the estimate was made in good faith and based on the best information reasonably available.
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Related questions on this topic
- A creditor may use a revised Loan Estimate to reset a tolerance baseline only when:
- The borrower asks to switch from a 30-year to a 15-year loan after the initial LE, changing several costs. The creditor may:
- A revised Loan Estimate may NOT be provided:
- Premiums for homeowners (hazard) insurance disclosed on the LE are subject to which tolerance?
- A charge for a service the consumer cannot shop for, provided by an affiliate of the creditor, is subject to which tolerance?
- Which pairing correctly matches the charge to its tolerance category?
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