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TRID Loan Estimate: Zero Percent Tolerance

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Partner with Banker's Compliance Consulting: https://bit.ly/BCC-QuickResponse - The "Zero Tolerance" rule means that certain fees and charges on the Loan Estimate must be equal to or less than the actual fees on the Closing Disclosure. This includes lender fees, investor fees, credits, and third-party services where the lender selects the provider. - Lender credits cannot be reduced once provided to the borrower, except in certain limited circumstances. - Transfer taxes are always subject to the Zero Tolerance rule, which can be challenging if the property is located outside the lender's normal service area. - The lender must do thorough research and make good faith estimates on fees, especially for third-party services like appraisals, to avoid tolerance violations. - Lenders need to carefully document the rationale and timeline for their estimates to demonstrate compliance during audits and examinations. Clip taken from BCC TRID Loan Estimate. Find training here - https://bit.ly/BCC-TRIDLE

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