We have a file where Escrow is paying the recording fee for the Borrower. We received the final numbers from the Recorder's Office and found the fee has increased over the 10% limit. Our LOS is telling us to cure, but since it's paid by others, wouldn't it not be required to be cured, but an increase to Escrow's amount paid?

How can an amount entered in the "Paid by Others" column generate a lender cure?

To start with, the recording fee, if paid by the borrower, is bundled with any other 10% costs paid by the borrower and the total of the estimates for those costs is compared with the total actual costs for the bundle to determine whether you increased by over 10%.

And, if recording fee was not paid by the buyer, it should not be in the Borrower-paid columns on page 2 (it would go in the Seller-paid or Paid by others columns), and it would not make it to the Calculation of Closing Cash table or create a tolerance cure.