A homebuyer receives a Loan Estimate and notices the origination charges are significantly higher than what the lender verbally quoted. Under TRID, which fees are subject to a 0% tolerance (cannot increase at closing)?
Why Lender's origination charges and fees for required services where the lender chose the provider Is Correct
Answer C: Lender's origination charges and fees for required services where the lender chose the provider
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
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Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
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.
State-Specific Concepts
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