[Sandy]

I have a TRID loan that is showing we need a tolerance cure but not sure why. We think it has to be due to the 10% tolerance category. The loan is a small amount of $13,350. Only 2 fees in that category changed at all. The title insurance fee increased by $30 and the provider IS on our provider list. The attorney fee decreased by $25 and the provider is NOT on our provider list. The difference would result in an increase of only $5 of the aggregate total which would not exceed the 10% tolerance. Is it saying we need to do a cure because the attorney fee is removed from the total used, because it is Not on the list, when calculating if we have exceeded the 10%? If so we would exceed the 10% tolerance.

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[rcooper]

I think that is exactly what happened – the customer chose a provider that wasn’t on the shopping list so it shifted the attorney fee to the “no tolerance” category and out of the 10% which means it doesn’t factor into the aggregate calculation.

1026.19(e)(3)(ii)-3:
3. Services for which the consumer may, but does not, select a settlement service provider. Good faith is determined pursuant to § 1026.19(e)(3)(ii), instead of § 1026.19(e)(3)(i), if the creditor permits the consumer to shop for a settlement service provider, consistent with § 1026.19(e)(1)(vi)(A). Section 1026.19(e)(3)(ii) provides that if the creditor requires a service in connection with the mortgage loan transaction, and permits the consumer to shop for that service consistent with § 1026.19(e)(1)(vi), but the consumer either does not select a settlement service provider or chooses a settlement service provider identified by the creditor on the list, then good faith is determined pursuant to § 1026.19(e)(3)(ii), instead of § 1026.19(e)(3)(i). For example, if, in the disclosures provided pursuant to §§ 1026.19(e)(1)(i) and 1026.37(f)(3), a creditor discloses an estimated fee for an unaffiliated settlement agent and permits the consumer to shop for that service, but the consumer either does not choose a provider, or chooses a provider identified by the creditor on the written list provided pursuant to § 1026.19(e)(1)(vi)(C), then the estimated settlement agent fee is included with the fees that may, in aggregate, increase by no more than 10 percent for the purposes of § 1026.19(e)(3)(ii). If, however, the consumer chooses a provider that is not on the written list, then good faith is determined according to § 1026.19(e)(3)(iii).

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