Perhaps he is saying because the system recognizes the fee as not being subject to any tolerance standards because it is treating the fee as if the borrower selected a provider other than what was on the list.
Rtaylor - You may have to "trick" the LOS if it treats the addition of the fee in Section B to a 0% tolerance standard, but, otherwise as RR noted, there should not necessarily be a tolerance cure related to moving the fee to Section B. The same tolerance calculation as usual will hold. You would include the fee in the 10% bucket and match up the Final CD charges subject to 10% tolerance vs. the last LE. Was the selected title provider fee significantly higher than what the bank disclosed in the last revised LE with a valid COC?