A borrower compares the Loan Estimate to the Closing Disclosure and notices that the recording fees increased by $50 from $350 to $400. Recording fees are set by the government. Under TRID tolerance rules, is this increase allowed?
Correct Answer
C) Yes, because recording fees set by the government are in the 'no limitation' category and may change by any amount
Under TRID, certain charges have no tolerance limit—they may change by any amount from the Loan Estimate to the Closing Disclosure. Government recording fees are generally in this category because the lender has no control over government-set charges.
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More Property Disclosures Questions
A builder warranty typically excludes:
Under TRID, the Loan Estimate replaced which older disclosure form that was previously provided to borrowers early in the loan process?
What is the primary purpose of the Loan Estimate form under TRID?
The Closing Disclosure must be provided to the borrower at least three business days before closing. If the closing is scheduled for Friday, and Saturdays and Sundays are not business days for this lender, when is the latest the borrower can receive the Closing Disclosure?
A borrower is buying a home and the lender requires escrow for property taxes and homeowners insurance. Where does the borrower find information about the initial escrow deposit required at closing?
- → What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
- → The Closing Disclosure replaced which two older disclosure forms that were previously used in residential mortgage transactions?
- → Under TRID, all of the following are included on Page 1 of the Loan Estimate EXCEPT.
- → Under TRID, all of the following pieces of information trigger the lender's obligation to provide a Loan Estimate EXCEPT.
- → A borrower wants to waive the three-business-day waiting period after receiving the Closing Disclosure because an emergency requires the borrower to move into the property immediately. Under TRID, can the borrower waive the waiting period?
- → A real estate agent is explaining TRID disclosures to a buyer. All of the following are on the Closing Disclosure EXCEPT.
- → A borrower is told by the lender that certain closing costs may change between the Loan Estimate and Closing Disclosure. Under TRID, which of the following fees has the strictest tolerance limit?
- → The Closing Disclosure includes an 'Other Costs' section. A borrower notices a charge for a home inspection that the borrower ordered independently. Who is responsible for this cost?
- → 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?
- → A lender's origination charge on the Loan Estimate is $2,000. At closing, the origination charge on the Closing Disclosure is $2,300. Under TRID, what must the lender do?
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