Origination ActivitiesQuestion 228 of 400
A charge for a service the consumer cannot shop for, provided by an affiliate of the creditor, is subject to which tolerance?
a.10 percent tolerance
b.No tolerance
c.Zero tolerance
d.15 percent tolerance
Explanation
Charges for services the consumer cannot shop for that are provided by the creditor or an affiliate of the creditor are subject to zero tolerance. Because the creditor controls the provider, it is expected to disclose those amounts accurately.
Law Reference: TRIDPractice all 400 questions free — no signup required.
Related questions on this topic
- A revised Loan Estimate may NOT be provided:
- Amounts placed into an escrow, impound, or reserve account are subject to which tolerance?
- Premiums for homeowners (hazard) insurance disclosed on the LE are subject to which tolerance?
- Which pairing correctly matches the charge to its tolerance category?
- At closing, which of these is most likely permitted to be higher than the Loan Estimate without a tolerance cure?
- During processing, an underwriter needs to verify a salaried borrower's income. Which document set most directly supports qualifying income for a W-2 wage earner?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review