Q: What charges are subject to a 10% cumulative tolerance?
A: Charges for third-party services and recording fees paid by or imposed on the consumer are grouped together and subject to a 10% cumulative tolerance. This means the consumer may be charged more than the amount disclosed on the Loan Estimate for any of these charges so long as the total sum of the charges added together does not exceed the sum of all such charges disclosed on the Loan Estimate by more than 10%. (§ 1026.19(e)(3)(ii))
These charges are:
NOTE: Remember, when a creditor allows a consumer to shop for a third-party service and the consumer chooses a third-party service provider not identified on the creditor’s list, the charge is not subject to a tolerance limitation (See section 7.3 above).