CFPB TRID Sec. 7 - Are there circumstances where creditors are allowed to charge more than disclosed on the Loan Estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  Are there circumstances where creditors are allowed to charge more than disclosed on the Loan Estimate?
 
A:  Yes. A creditor may charge the consumer more than the amount disclosed in the Loan Estimate in specific circumstances, described below:
 
  • Certain variations between the amount disclosed and the amount charged are expressly permitted by the TILA-RESPA Rule (See section 7.3 below for additional information on which variations are permitted) (§ 1026.19(e)(3)(iii));
  • The amount charged falls within explicit tolerance thresholds (and the estimate is not for a zero tolerance charge where variations are never permitted) (§ 1026.19(e)(3)(ii)) (See sections 7.4 and 7.11 below); or
  • Changed circumstances or another triggering event under § 1026.19(e)(3)(iv) permits the charge to be changed and a revised Loan Estimate, a Closing Disclosure, or a corrected Closing Disclosure is provided to the consumer in accordance with the TILA-RESPA Rule. (§ 1026.19(e)(3)(iv)) (See section 8.2 below)
 
 
This Loan Estimate / LE information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

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