10% Tolerance for Recording Fees

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Question:

Regarding the 10% tolerance for recording fees, are the recording fees and fees charges by the settlement attorney all included in a cumulative 10% tolerance, or are recording fees in their own 10% tolerance category? For example, we have a settlement attorney that did not disclose they would be charging a $50.00 release fee on a refinance, however, we did over-disclose on the lenders title policy fee on the Loan Estimate, which will allow us to remain under the 10% tolerance if this is a cumulative tolerance.

Answer:

The 10% tolerance is based on the cumulative total of all charges within that category. However, if a disclosed charge within that category is not purchased then it has to be removed from the total for the good faith comparison purposes.

Example - If a survey fee the borrower can shop for was disclosed on the LE and the survey was not obtained then that fee would have to be removed from the cumulative total for the good faith comparison.