Under the TRID rule, which of the following fees has zero tolerance for increases between the Loan Estimate and Closing Disclosure?
Correct Answer
B) Origination charges
Under TRID, origination charges have zero tolerance, meaning they cannot increase from the Loan Estimate to the Closing Disclosure unless there is a valid changed circumstance. This includes lender origination fees, discount points, and other lender charges.
Why This Is the Correct Answer
Under TRID, origination charges have zero tolerance, meaning they cannot increase from the Loan Estimate to the Closing Disclosure unless there is a valid changed circumstance. This includes lender origination fees, discount points, and other lender charges.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
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