Regulation Z requires that a Loan Estimate …be provided in good faith…if any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure based on the best information reasonably available... [Commentary to §1026.19(e)(1)(i) #1] Generally, an estimated closing cost will be considered to be “in good faith” if the actual final amount paid by the consumer does not exceed the amount included on the Loan Estimate. However, there are some exceptions. While certain fees cannot change (0% tolerance), some can change up to a certain threshold (10% tolerance) and others have no restrictions (unlimited tolerance).
Zero tolerance fees include things like:
- Lender/Broker Fees
- Investor Fees
- Transfer Taxes
- Certain Third-Party Fees (flood determination, credit report, appraisal, etc.)
Jerod explains more in the video.
Published 2026/02/25
