A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
Correct Answer
D) It depends on whether the total of all fees in the 10 percent tolerance category increased by more than 10 percent in aggregate
When the borrower shops for a service from the lender's written list of providers, the fee falls in the 10 percent aggregate tolerance category. Individual fees in this category may increase, but the total of all fees in this category cannot increase by more than 10 percent from the Loan Estimate to the Closing Disclosure.
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