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#2197700 - 11/07/18 05:48 PM Good Faith Estimate - 10% tolerance
Dodge Offline
100 Club

Registered: 03/04/10
Posts: 174
When we sent the title company a request for a quote on title fees we gave them the wrong loan amount; therefore, the title fees disclosed on the Loan Estimate were way off.

The borrower decided use another title company, but we will still be held to the 10% tolerance since we did not make a good faith estimate?

TRID - TILA/RESPA Integrated Disclosures Rule
#2197703 - 11/07/18 06:27 PM Re: Good Faith Estimate - 10% tolerance [Re: Dodge ]
rlcarey Offline
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Registered: 07/16/01
Posts: 68045
Loc: Galveston, TX
Lack of good faith makes the charge subject to 0% tolerance:

19(e)(3)(iii) Variations permitted for certain charges. - Comment 2

For example, if the consumer informs the creditor that the consumer will choose a settlement agent not identified by the creditor on the written list provided under § 1026.19(e)(1)(vi)(C), and the creditor discloses an unreasonably low estimated settlement agent fee of $20 when the average prices for settlement agent fees in that area are $150, then the under-disclosure does not comply with § 1026.19(e)(3)(iii) and good faith is determined under § 1026.19(e)(3)(i).
The opinions expressed here should not be construed to be those of my employer:

#2198222 - Yesterday at 02:46 PM Re: Good Faith Estimate - 10% tolerance [Re: Dodge ]
Cridal_Z Offline
New Poster

Registered: 06/25/17
Posts: 6
What happens if the settlement provider listed on our SSPL ADDS a fee, payable to said settlement agent, would that fee be subject to the tolerance limits even though the fee wasn't disclosed on our SSPL?

We have a company who pushes over their fees to us from Smart Fees, so that our LE numbers are in line with what should be charged at closing, but then on occasion they add a notary fee (so that fee/service was not on our SSPL). We have to charge it, but I was of the thinking that because the notary fee wasn't a disclosed fee it did not fall in with the other tolerance items that were listed.

#2198233 - Yesterday at 03:14 PM Re: Good Faith Estimate - 10% tolerance [Re: Dodge ]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 37331
Loc: Cape Cod
See revised comment 19(e)(3)(ii)-2.ii. You treat it as though it is part of the 10% bucket.
John S. Burnett
Professional Compliance Nerd since 1976
Bankers' Threads User #8