Q: What if the changed circumstance causes third-party charges subject to a cumulative 10% tolerance to increase?
A: It is possible that one of the events described above may cause one or more third-party charges subject to a 10% cumulative tolerance to increase. Creditors are permitted to provide and rely upon a revised Loan Estimate and reset tolerances only when the cumulative effect of the changed circumstance results in an increase to the sum of all costs subject to the tolerance by more than 10%. (Comment 19(e)(3)(iv)(A)-1.ii)
A creditor may use a Closing Disclosure or corrected Closing Disclosure to reset tolerances as well. (§ 1026.19(e)(4)). For information about using Closing Disclosures to reset tolerances, see sections 10.3, 11.11, 12.2 and 12.3 below (in the Bureau’s compliance guide).