Recording fees and services the consumer shopped for from the lender's list totalled $1,480 on the estimate and $1,610 at closing. Assuming all these unaffiliated-provider services qualify for the ten-percent bucket, does the aggregate increase require a refund?
Correct Answer
A) No cure: $130 is 8.8%, inside the 10% allowance on the aggregate
A. The aggregate increase does not require a tolerance cure. $1,610 − $1,480 = $130; $130 / $1,480 × 100 is about 8.78%. The 10% ceiling is $1,628, which is $18 above the actual aggregate. Scope and exceptions: The question stipulates that all charges belong in this bucket and supplies the applicable estimate. Test the entire bucket, not each fee separately. Provider affiliation, shopping permission and the selected provider can change the classification. Source: Section 1026.19(e)(3)(ii); comments 19(e)(3)(ii)-1 through -3 — https://www.consumerfinance.gov/rules-policy/regulations/1026/19/
Why This Is the Correct Answer
A. The aggregate increase does not require a tolerance cure. $1,610 − $1,480 = $130; $130 / $1,480 × 100 is about 8.78%. The 10% ceiling is $1,628, which is $18 above the actual aggregate. Scope and exceptions: The question stipulates that all charges belong in this bucket and supplies the applicable estimate. Test the entire bucket, not each fee separately. Provider affiliation, shopping permission and the selected provider can change the classification.
Why the Other Options Are Wrong
Option B: No cure: third-party charges carry no tolerance limit of any kind
These charges have a limited tolerance, not an unlimited one.
Option C: Cure $130, since recording fees are always a zero tolerance item
Recording fees are not categorically zero-tolerance charges.
Option D: Cure $130, because any increase in a third-party charge is refundable
An increase alone does not establish a refund obligation.
Exam Tip
Classify charges first, then compare the aggregate with 110% of the valid baseline.
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