Which fees can only change by 10% on the Loan Estimate?

Which fees can only change by 10% on the Loan Estimate?

• A. Required services the lender allows borrowers to shop for where borrowers select from a list; title services; recording fees
• B. Origination charges
• C. Interest rate
• D. Escrow deposits

Answer: (A)

The main idea here is TRID’s tolerance rules for fees on the Loan Estimate. Some charges can vary between the LE and the Closing Disclosure, but only within set limits. The charges that can change, but only up to a 10% cumulative amount, are those for third‑party services that you can shop for from a list the lender provides. This includes services you must pay to third parties (like title services) and recording fees, where you pick a provider from the lender’s list. The lender may present several acceptable options, and the actual charges can differ by provider, but the total for these items can only move up or down by 10% from what was disclosed on the LE. Other items don’t fall into this 10% category. Origination charges are the lender’s own fees for their services and are typically governed by stricter limits (not the 10% bucket). The interest rate isn’t a fee that follows this tolerance at all, since it’s tied to the rate lock and market movement. Escrow deposits are prepaid items and aren’t part of the 10% tolerance for third‑party services.

The main idea here is TRID’s tolerance rules for fees on the Loan Estimate. Some charges can vary between the LE and the Closing Disclosure, but only within set limits. The charges that can change, but only up to a 10% cumulative amount, are those for third‑party services that you can shop for from a list the lender provides. This includes services you must pay to third parties (like title services) and recording fees, where you pick a provider from the lender’s list. The lender may present several acceptable options, and the actual charges can differ by provider, but the total for these items can only move up or down by 10% from what was disclosed on the LE.

Other items don’t fall into this 10% category. Origination charges are the lender’s own fees for their services and are typically governed by stricter limits (not the 10% bucket). The interest rate isn’t a fee that follows this tolerance at all, since it’s tied to the rate lock and market movement. Escrow deposits are prepaid items and aren’t part of the 10% tolerance for third‑party services.