Which items are not allowed to change on appraisals?

Which items are not allowed to change on appraisals?

• A. Origination charges; Points (after loan is locked)
• B. Escrow deposits
• C. Daily interest
• D. Title services

Answer: (A)

The concept here is that some mortgage settlement charges are fixed under TRID rules and must not change from the Loan Estimate to the Closing Disclosure. Those are called zero-tolerance items. Origination charges and discount points fall into this category. Once these amounts are quoted (often at loan lock), they cannot increase by the time of closing. If they do change, the lender is required to reissue the Loan Estimate and start a new disclosure cycle with the appropriate waiting period. Escrow deposits, daily interest, and title services are not zero-tolerance items. They can change due to factors like changes in taxes and insurance, the exact closing date, or the selection of different service providers, and they’re subject to the applicable tolerance rules, not an absolute guarantee of the same amount from LE to CD.

The concept here is that some mortgage settlement charges are fixed under TRID rules and must not change from the Loan Estimate to the Closing Disclosure. Those are called zero-tolerance items. Origination charges and discount points fall into this category. Once these amounts are quoted (often at loan lock), they cannot increase by the time of closing. If they do change, the lender is required to reissue the Loan Estimate and start a new disclosure cycle with the appropriate waiting period.

Escrow deposits, daily interest, and title services are not zero-tolerance items. They can change due to factors like changes in taxes and insurance, the exact closing date, or the selection of different service providers, and they’re subject to the applicable tolerance rules, not an absolute guarantee of the same amount from LE to CD.