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Tolerance Violation-Recording Fees

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Question: 
If Recording fees were not disclosed on the Loan Estimate, but these fees were charged on the Closing Disclosure, is this a tolerance violation if the accumulative total does not exceed the disclosed fees for the 10% category?
Answer: 

No. Ordinarily, if you leave out a closing cost you can't "fix" it and have to bear the cost. But if the cost is one that is covered by the aggregate 10% rule in section 1026.19(e)(3)(ii) -- which includes recording fees -- you add up all of the actual costs for the costs covered by the 10% rule and get a total for the group. Then you take the same costs and no others (don't include a service that wasn't used) from the loan estimate and total them. If the total of the actual costs in the 10% group - including any that weren't included on the loan estimate -- don't exceed the costs of those services on the loan estimate by more than 10%, you don't have a tolerance violation under section 1026.19(e)(3)(ii).

See Comment 19(e)(3)(ii)-2.

First published on 08/15/2021

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