A buyer reviews the Closing Disclosure and notices that the title insurance fee increased by 15 percent compared to the Loan Estimate. The title company was selected by the lender and was not on the borrower's shopping list. Under TRID tolerance rules, is this increase permissible?
Correct Answer
C) No, because fees for services selected by the lender that the borrower cannot shop for are in the zero-tolerance category and cannot increase
When the lender selects a settlement service provider and does not allow the borrower to shop, the fee falls in the zero-tolerance category. Zero-tolerance fees cannot increase at all from the Loan Estimate to the Closing Disclosure. A 15 percent increase is a clear violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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