Loan Estimate Fees and Tolerances

Question 1

Box A: Origination Charges

Answer 1

Fees Disclosed: Discount points, Origination charges (itemized)
Tolerance Applied: Zero Tolerance

Question 2

Box B: Services you cannot shop for

Answer 2

Fees Disclosed: Appraisal, credit report, tax service, flood cert, FHA upfront MIP, etc.
Tolerance Applied: Zero Tolerance

Question 3

Box C: Services you can shop for

Answer 3

Fees Disclosed: Title search, closing fee, lender’s title policy, pest inspection, survey, etc.
Tolerance Applied: 10% aggregated tolerance when using a vendor on the creditor’s list. Unlimited tolerance if borrower selects alternate vendor.

Question 4

Box E: Taxes and other government fees

Answer 4

Fees Disclosed: Recording fees and transfer taxes.

Tolerance Applied: Recording fees: 10% tolerance. Transfer Taxes: Zero Tolerance

Question 5

Box F: Prepaids

Answer 5

Fees Disclosed: First year homeowner’s insurance premium, prepaid/per-diem interest, property tax bill has been released for payment.
Tolerance Applied: Unlimited tolerance.

Question 6

Box G: Initial Escrow Payment at Closing

Answer 6

Fees Disclosed: Impounds to start escrow account plus allowable cushion: property taxes, property insurance, mortgage insurance (monthly).
Tolerance Applied: Unlimited tolerance

Question 7

Box H: Other

Answer 7

Fees Disclosed: Items not required by lender but that may be obtained: often owners title policy, but sometimes not used.