On a refinance transaction, recording fees increase from $350 to $425 due to additional documents required by the county. The loan amount is $250,000. How should this be addressed?
Correct Answer
B) Provide corrected Closing Disclosure as recording fees have zero tolerance
Recording fees are subject to zero tolerance under TRID. Any increase in recording fees, regardless of amount, requires a corrected Closing Disclosure and constitutes a tolerance violation requiring cure.
Why This Is the Correct Answer
Recording fees are subject to zero tolerance under TRID. Any increase in recording fees, regardless of amount, requires a corrected Closing Disclosure and constitutes a tolerance violation requiring cure.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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Previous Question
A refinance transaction closes on Friday. Due to a postal holiday, the required TILA disclosures are not delivered until the following Tuesday. The borrower wants to rescind on Thursday of that week. Can they still rescind?
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A mortgage has an APR of 9.2% when the average prime offer rate for comparable transactions is 6.5%. The loan amount is $95,000 with points and fees of $4,200. Is this loan subject to HOEPA?