A Loan Estimate discloses a $1,500 appraisal fee in the 'Services You Can Shop For' section, but provides no list of service providers. At closing, the borrower used the lender's appraiser and was charged $1,650. What tolerance category applies?
Correct Answer
A) Zero tolerance - failure to provide the shopping list moves it to this category
When a lender fails to provide the required written list of service providers for 'Services You Can Shop For,' those services are treated as zero tolerance fees. The $150 increase would be a tolerance violation requiring the lender to cure the excess.
Why This Is the Correct Answer
When a lender fails to provide the required written list of service providers for 'Services You Can Shop For,' those services are treated as zero tolerance fees. The $150 increase would be a tolerance violation requiring the lender to cure the excess.
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