A borrower receives a Loan Estimate showing a total of loan costs of $8,000. At closing, the actual total loan costs are $8,500. Under TILA tolerance rules, what is the maximum amount the borrower can be charged without triggering a cure requirement?
Correct Answer
C) $8,500 - any amount is permitted
Under TILA/Regulation Z Section 1026.19(e)(3), the total of loan costs category has no tolerance limit - lenders may charge any amount without triggering cure requirements. However, individual fees within this category may have specific tolerance limits (0%, 10%, or unlimited depending on the fee type).
Why This Is the Correct Answer
Under TILA/Regulation Z Section 1026.19(e)(3), the total of loan costs category has no tolerance limit - lenders may charge any amount without triggering cure requirements. However, individual fees within this category may have specific tolerance limits (0%, 10%, or unlimited depending on the fee type).
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