Which fees are allowed to change by up to 10% on appraisals?

Which fees are allowed to change by up to 10% on appraisals?

• A. Required services the borrower can shop for from a list; Title services; Recording Fees
• B. Origination charges; Points
• C. All fees except the appraisal
• D. Broker fees only

Answer: (A)

In TRID disclosures, different closing costs have different tolerance rules. The 10% cumulative tolerance applies to services the borrower can shop for from a list. That category includes items like title services and recording fees, since the borrower has the option to shop around for those providers within the lender’s approved list. Because the borrower can choose among providers, the actual charges at closing may differ from the estimates by up to 10%. Other fees, such as origination charges or points, aren’t in this 10% shopping-for category, and some items (like certain lender-ordered services) have different or zero tolerances. The key idea is that the 10% limit specifically governs services the borrower can shop for from a list, including title services and recording fees, which is why this choice is correct.

In TRID disclosures, different closing costs have different tolerance rules. The 10% cumulative tolerance applies to services the borrower can shop for from a list. That category includes items like title services and recording fees, since the borrower has the option to shop around for those providers within the lender’s approved list. Because the borrower can choose among providers, the actual charges at closing may differ from the estimates by up to 10%.

Other fees, such as origination charges or points, aren’t in this 10% shopping-for category, and some items (like certain lender-ordered services) have different or zero tolerances. The key idea is that the 10% limit specifically governs services the borrower can shop for from a list, including title services and recording fees, which is why this choice is correct.