A Washington file closes in 2026 with total closing costs below the most recent good faith estimate. On the statutory comparison basis excluding specified prepaid escrowed ownership costs, is an additional explanation required solely by the excess-fee subsection?
Correct Answer
A) No further disclosure is required by the excess fee provision
If the borrower closing costs on the final settlement statement, excluding prepaid escrowed costs of ownership as defined by rule, do not exceed the total closing costs in the most recent good faith estimate on the same basis, no other disclosures are required by that subsection. Other choices: the explanation requirement is what this carve-out lifts; no refund of the difference is required; and the test is the total rather than whether any single fee rose. Source: RCW 19.146.030(4)
Why This Is the Correct Answer
If the borrower closing costs on the final settlement statement, excluding prepaid escrowed costs of ownership as defined by rule, do not exceed the total closing costs in the most recent good faith estimate on the same basis, no other disclosures are required by that subsection. Other choices: the explanation requirement is what this carve-out lifts; no refund of the difference is required; and the test is the total rather than whether any single fee rose. Source: RCW 19.146.030(4)
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