There are 2 different tolerances you may be talking about. One is on the GFE/HUDS-1 comparison on page 3 of the HUD-1. That would depend on whether the fee was in the 10% tolerance field or 0% field.
There is also a different tolerance test for the truth in lending disclosure. The APR tolerance is .25% for variable rate loans and .125% for "fixed rate loans (payment amounts do not vary)"
Which might you be talking about?
Integrity. With it, nothing else matters. Without it, nothing else matters.