Under RR, which items are included in the 10% fee tolerance?

Under RR, which items are included in the 10% fee tolerance?

• A. Recording Fees and Recommended SSP (services providers)
• B. Recording Fees only
• C. Recommended SSP (services providers) only
• D. Transfer Taxes

Answer: (A)

The idea being tested is how TRID/closure tolerance rules categorize certain closing costs. The 10% cumulative tolerance applies to specific third-party charges that can vary between the initial disclosure and the final Closing Disclosure. Recording fees fall into this category because they are charges to record the mortgage with the local government and can vary by jurisdiction and timing. Charges for services from recommended service providers (SSPs) also fall here when the borrower uses a provider from the lender’s list; those fees can change from estimate to closing, but must stay within 10% of the amount originally disclosed. So, both recording fees and the fees for recommended SSPs are included in the 10% tolerance. Transfer taxes and other items are treated separately and aren’t part of this 10% bucket.

The idea being tested is how TRID/closure tolerance rules categorize certain closing costs. The 10% cumulative tolerance applies to specific third-party charges that can vary between the initial disclosure and the final Closing Disclosure. Recording fees fall into this category because they are charges to record the mortgage with the local government and can vary by jurisdiction and timing. Charges for services from recommended service providers (SSPs) also fall here when the borrower uses a provider from the lender’s list; those fees can change from estimate to closing, but must stay within 10% of the amount originally disclosed.

So, both recording fees and the fees for recommended SSPs are included in the 10% tolerance. Transfer taxes and other items are treated separately and aren’t part of this 10% bucket.