Owner's Title Insurance was listed in Section H of the Loan Estimate as optional. (We do not require) A revised LE was produced when the rate was locked, and for some reason the processor moved this fee to Section C. On the Closing Disclosure, it was moved to Section B as they used the title company on our approved list.

Is that appropriate or do we have a tolerance violation?

You have a disclosure violation. I do not see it as a tolerance violation.

Would that be the same case in a situation where a required fee was placed in the optional section, but then moved to the required/can't shop for section?

Not in my mind. That is a huge difference. However, if the original loan was being sold in the secondary market - who knows how an investor would see.it. But, if the fee is an optional fees not subject to tolerance testing, I am having a hard time saying that it becomes a tolerance issue simply by skrewing up and placing it into the wrong Section.

That aligns with what I was thinking as well. Thanks, RL!

Thank you for the guidance, appreciate the responses!