There are certain fees and charges on a TRID-covered loan that are subject to an unlimited tolerance. For example, amounts disclosed for certain things like prepaid interest, property insurance premiums, property taxes, etc., can change. The amounts do not have to be within a tolerance (i.e., 0% or 10%) like other types of fees. Because of this, lenders often have the misconception that they can just disclose whatever amount they want, with no consequences. That, of course, is not the case. While the amount disclosed does not have to be exact or within a set tolerance, it must still be meaningful and meet the good faith standard; that is, it must be based on the best information available to the creditor at the time it is disclosed.
Jerod explains more in the video.
Published 2026/03/16
