CFPB TRID Sec. 7 - What if a consumer pays more for a particular charge for a third-party service or recording fee than estimated, but the total charges paid are still within 10% of the estimate?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  What if a consumer pays more for a particular charge for a third-party service or recording fee than estimated, but the total charges paid are still within 10% of the estimate?
 
A:  Whether an individual estimated charge subject to § 1026.19(e)(3)(ii) is in good faith depends on whether the sum of all charges subject to the 10% cumulative tolerance increases by more than 10%, even if a particular charge increases by more than 10%. A creditor may charge more than 10% in excess of an individual estimated charge in this category, so long as the sum of all charges is still within the 10% cumulative tolerance. (Comment 19(e)(3)(ii)-2)
 
For example, if the creditor includes a $300 estimate for a settlement agent, included in the 10% cumulative tolerance, the creditor may not be outside the 10% cumulative tolerance just because that single fee increases by 10%, unless the sum of all fees in the 10% cumulative tolerance increases by more than 10%. (Comment 19(e)(3)(ii)-2)
 
 
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/
 

Add Feedback