Which of the following fees is subject to the 10% cumulative tolerance under TRID?
Correct Answer
D) Appraisal fee paid to the lender's chosen appraiser
Under TRID (12 CFR 1026.19(e)(3)(ii)), the appraisal fee paid to a lender-selected appraiser is subject to 10% cumulative tolerance. Lender fees have zero tolerance, government fees are unlimited, and required services where the borrower cannot shop have 10% tolerance but title insurance is specifically zero tolerance.
Why This Is the Correct Answer
Under TRID (12 CFR 1026.19(e)(3)(ii)), the appraisal fee paid to a lender-selected appraiser is subject to 10% cumulative tolerance. Lender fees have zero tolerance, government fees are unlimited, and required services where the borrower cannot shop have 10% tolerance but title insurance is specifically zero tolerance.
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