Escrow & Title
A Minnesota homebuyer receives a Loan Estimate (LE) from their lender three days after submitting their loan application. The Closing Disclosure shows higher fees than the LE. Which fees are protected from increase (cannot change at all)?
ALender origination charges✓ Correct
BThird-party fees for required services where the borrower chose from the lender's list
CTitle insurance fees chosen from outside providers
DRecording fees charged by the county
Explanation
Under TRID rules, lender origination charges (origination fees, discount points, and transfer of equity) are in a 'zero tolerance' category and cannot increase from the LE to the CD. Some third-party fees can increase up to 10% in total.
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Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
State-Specific Concepts
Recording Requirements
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