A borrower requests a rate-lock extension that carries the lender's usual 0.375-point extension fee. No other change affects costs, and all revised-disclosure timing and documentation requirements are met. Which increase may the lender use in determining TRID good faith?
Correct Answer
C) The usual extension fee attributable to the requested extension, not unrelated fee increases
C. Only the usual fee attributable to the requested extension is supported. The request explains this fee; it does not explain unrelated increases. The stem establishes compliance with the separate timing and documentation conditions. Scope and exceptions: This is not a blanket tolerance reset. Source: Official interpretation 19(e)(3)(iv)-2 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
C. Only the usual fee attributable to the requested extension is supported. The request explains this fee; it does not explain unrelated increases. The stem establishes compliance with the separate timing and documentation conditions. Scope and exceptions: This is not a blanket tolerance reset.
Why the Other Options Are Wrong
Option A: No extension fee increase, because borrower-requested changes cannot revise a tolerance baseline
It incorrectly rejects every borrower-requested revision.
Option B: Only increases totaling no more than 10% of the extension fee
The proposed 10% cap is not this rule.
Option D: All settlement-charge increases disclosed when the rate lock is extended
Simultaneous disclosure does not justify unrelated increases.
Exam Tip
A valid reason supports its affected charge, not every charge.
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