CFPB TRID Sec. 7 - What charges are subject to zero tolerance?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  What charges are subject to zero tolerance?
 
A:  For all other charges, creditors must not charge consumers more than the amount disclosed on the Loan Estimate unless there is a changed circumstance or other triggering event that permits a revised estimate, as discussed below in section 8 (of the Bureau’s compliance guide).
 
These zero tolerance charges include:
 
  • Fees paid to the creditor, mortgage broker, or an affiliate of either, where such fees do not fall within the exceptions for charges that may change without regard to a tolerance limitation.7 See sections 7.3 above and 7.12 below. (§ 1026.19(e)(3)(ii)(B); Comment 19(e)(3)(i)-1);
  • Fees paid to an unaffiliated third party if the creditor did not permit the consumer to shop, based on the facts and circumstances, for a third-party service provider for a settlement service (§ 1026.19(e)(3)(ii)(C); Comment 19(e)(3)(i)-1.iv); or
  • Transfer taxes. (Comments 19(e)(3)(i)-1 and -4)
 
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Footnote:
 
7 For example, fees that do not fall within the exceptions in § 1026.19(e)(3)(iii) include amounts paid by the consumer to the creditor to reduce the interest rate or fees paid to an affiliate if the creditor did permit the consumer to shop for that settlement service, based on the facts and circumstances, but failed to provide the written list of service providers. (See Comment 19(e)(3)(iii)-2 and section 7.5 above)
 
 
 
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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