One of the key components of the TRID Rule is the concept of tolerances. Essentially, you will be held to specific tolerance levels for certain fees that you disclose on the Loan Estimate. There are certain fees that are subject to a 0% tolerance and others that fall under a 10% tolerance. There are even some fees where the tolerance is unlimited, but you must still disclose them in good faith. If you don’t have a valid changed circumstance to reset those tolerances, you are, in a sense, bound to what you initially disclosed. For example, if you disclose that a credit report will cost $40 on the Loan Estimate, but it actually ends up costing $50, the borrower still only has to pay the $40, since this is a 0% tolerance item. The institution would be responsible for the additional $10. There are at least a couple of different ways this can be disclosed, depending on the scenario and the particular fees in question.
Jerod explains one option in the video: