On a $300,000 loan, the lender charged $2,100 for appraisal and credit report fees when the Loan Estimate showed $2,000. The borrower also paid $150 for a required pest inspection not disclosed on the Loan Estimate. What is the total tolerance violation?
Correct Answer
C) $250
The $100 increase in disclosed fees exceeds the 10% tolerance for these services. The $150 pest inspection fee represents a newly added service not on the Loan Estimate, which also violates tolerances. Total violation: $100 + $150 = $250.
Why This Is the Correct Answer
The $100 increase in disclosed fees exceeds the 10% tolerance for these services. The $150 pest inspection fee represents a newly added service not on the Loan Estimate, which also violates tolerances. Total violation: $100 + $150 = $250.
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