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?
Correct Answer
B) The borrower, because the home inspection was ordered by and for the benefit of the borrower
When a borrower independently orders a home inspection, the borrower is typically responsible for the cost. The Closing Disclosure lists all costs but does not change who is responsible for paying them.
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- → 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?
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- → 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?
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- → 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?