For third-party services where the borrower is permitted to shop, what is the tolerance level for fee increases?
Correct Answer
C) Unlimited tolerance if the borrower selects the provider
Under TRID (12 CFR 1026.19(e)(3)(iii)), when the borrower is permitted to shop for third-party services and selects a provider not on the creditor's list, there is unlimited tolerance - the fees can exceed the Loan Estimate amounts without restriction.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(e)(3)(iii)), when the borrower is permitted to shop for third-party services and selects a provider not on the creditor's list, there is unlimited tolerance - the fees can exceed the Loan Estimate amounts without restriction.
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