We have a situation where a fee was properly disclosed in Section B since it was payable to a third party, but during the course of the loan a process was changed that now makes the fee payable to the lender and, therefore, must be moved to Section A, would this create a tolerance cure? The fee was originally disclosed to the customer and remains a zero tolerance item, the only difference is where it is placed on the LE.

More of a business decision, either section is zero tolerance. Not even sure that is addressed anywhere.

As Randy stated, it is more of a business decision that is not specifically addressed by the Regs. Your LOS may show this as a tolerance cure, but at my prior employer I would authorize an override as long as moving the fee was between similar tolerance buckets, i.e. such as moving from a Section B 0% fee to a Section A 0% fee. I would allow this as long as it was originally disclosed and we kept to the same fee standard. I would also allow this when the fee was just mistakenly placed in the wrong section.