TRID Loan Estimate: Unlimited Tolerance Fees
The fees disclosed on the Loan Estimate are subject to certain tolerances. In other words, the fees cannot change by more than a certain threshold. Depending on the type of fee, the tolerance could be 0%, 10% or unlimited. Some people see that unlimited tolerance and think, for those particular fees, it really doesn’t matter what estimate is used, because there is no tolerance. Unfortunately, that isn’t quite the case. While the tolerance is unlimited for certain fees, the overall concept of “good faith” still applies. What that means is, you still have to do your due diligence in estimating the cost and basing the Loan Estimate on the best information available to you at the time the disclosure goes out the door. For example, you cannot just guess on the amount of real estate taxes because you can call the assessor or likely even access it online. If you have the ability to find out the information, you should. Failing to issue a Loan Estimate in good faith could result in the tolerance being changed from unlimited to 0%.
Jerod explains more in the video.
Published
2025/02/26
Jerod Moyer
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!