A lender provides a Loan Estimate with a $350 credit report fee. The borrower later requests an additional credit report for a co-borrower, costing another $350. How should this be handled regarding tolerance requirements?
Correct Answer
B) The additional $350 is not a tolerance violation if the borrower requested it
When a borrower requests additional services beyond what was originally disclosed (such as an additional credit report for a co-borrower), the charges for these additional services are not considered tolerance violations as they represent new services at the borrower's request.
Why This Is the Correct Answer
When a borrower requests additional services beyond what was originally disclosed (such as an additional credit report for a co-borrower), the charges for these additional services are not considered tolerance violations as they represent new services at the borrower's request.
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A borrower is presented with three loans: Loan A at 6.0% with $3,000 points, Loan B at 6.5% with $1,000 points, and Loan C at 7.0% with no points. Which loan represents the 'lowest points and fees' category?
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