Our MLO did not quote a fee for Lender's Title Insurance on the GFE. A fee of $82.00 was quoted for government recording charges.When preparing the HUD, when the actual charge that we charged for the Lender's title insurance (291.20) was put in a tolerance violation popped up (of course as it should). So, do we subtract the amount of 82.00 + 8.20(10% tolerance) = 90.20 from the $373.90 that was charged in that block(82.00 + 291.90)
and list on line 204? HELP???
Thanks!

The only charges in your 10% bucket actually charged were the lender's title insurance and your recording fees? If that's the case, i think you have it correct......you would have had no tolerance cure to make at a total of $90.20, but would cure everything above that. Somebody can correct me if i'm wrong.

OK. So the 82.00 plus the 8.20 equaling 90.20 was the tolerance we are permitted over on the government recording charges. So can we not charge the 10% over for the government recording charges ? Then subtract that amount from the total charges on the HUD. I am seriously confusing myself here. Thanks !

You add up everything that you disclosed in the 10% category on the GFE = $82.00

You add 10% = $90.20

You subtract the actual charges in the 10% category on the HUD-1 = $373.90

Your cure you owe the borrower is the difference = $283.70

You charge and disclose the actual costs - you don't play with those numbers on the HUD-1.

Thank you !!!