If a service is switch from third party to internal such as a construction inspection does the tolerance baseline stay the same? I know our system will probably have issue with this as it will think it is a new service but given the service will remain the same it will just go in to a different section it seems like it should not require a cure.

Just realize that there are no provisions in the regulation to switch a disclosed charge from Section B to Section A for tolerance testing, regardless of whether or not the name remains the same. You would have to bet on that logic might prevail with an auditor or examiner.

Yes. We have read lots of stories here about a charge being moved between sections resulting in a system determination that a new charge was added in the section it moved to and the system sees it as a tolerance violation.

The regulation seemingly only recognizes that a service may move from C to B (when the borrower does not shop for a shoppable service).

I do think you have a valid case for moving something from B to A when the bank decides to take a service "in-house" between the LE and the closing. But, as Randy said, you may have to do some convincing of an examiner or auditor.