An Ohio buyer receives a Closing Disclosure three business days before closing as required by TRID rules. At closing, the buyer notices a $500 increase in the lender's origination fee compared to the Loan Estimate. Under federal and Ohio practice, the buyer:
Correct Answer
D) May be entitled to a new three-day waiting period because the origination fee is a zero-tolerance item that should not have increased
Under TRID (TILA-RESPA Integrated Disclosure) rules, lender origination fees are zero-tolerance items that generally cannot increase from the Loan Estimate to the Closing Disclosure. If such an increase occurs, the buyer may be entitled to a revised Closing Disclosure and a new three-day waiting period, or the lender may need to cure the tolerance violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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In Ohio, after the deed is recorded, the county recorder assigns the document a recording reference number. This number is important because it:
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In Ohio, some counties have adopted the Torrens system of title registration in addition to the standard recording system. Under the Torrens system, title to property is established by: