TRID Tolerance Rules Test and Answers

TRID TEST

What fees can change 

Tolerances

What constitutes a loan application?

• Name
• Income
• Social Security Number
• Property Address
• Estimated Value of Property
• Mortgage Loan Amount sought

Any amount in the charges that cannot change (zero variation) charged beyond the amount disclosed on the LE will be charged to the consumer.

Select one:

True

False

The appraisal fee is what percent tolerance item?

Select one:

a. 0%

b. 5%

c. 3%

d. 10%What date does TRID become effective for applications?

Select one:

a. October 03, 2016

b. October 03, 2015

c. October 13, 2015

d. October 23, 2015

What does the Loan Estimate (LE) replace? (select all that apply):

Select one or more:

a. TIL

b. GFE

c. Cash to Close

d. HUD-1

The consumer must receive the Closing Disclosure (CD) no later than 3 business days before consummation of the loan.

Select one:

True

False

Which of the following charges can change without any tolerance limit (select all that apply)?

Select one or more:

a. Transfer taxes that are paid by the consumer

b. Homeowners Insurance

c. Prepaid interest

d. Amounts placed in Escrow/Impounds/Reserve

Applications taken prior to October 3, 2015 must continue to use TIL
Disclosure, GFE and HUD-1 settlement statement.

Select one:

True

False

The consumer has the right to request a revised Closing Disclosure (CD) one business day before consummation.

Select one:

True

False

Select the correct meaning for the acronym TRID.

Select one:

a. TRID-RESPA Integrated Disclosure

b. TILA-RESPA Integrated Document

c. TILA-RESPA Invoice Disclosure

d. TILA-RESPA Integrated Disclosure

What is the consummation date?

Select one:

a. The recording date

b. The disclosure date

c. The signing date

d. October 3, 2015

The Loan Estimate (LE) and the Closing Disclosure can be issued on the same day.

Select one:

True

False

�RED is Zero tolerance

Application Fee

�

Appraisal Waiver fee

�

Assumption Fee

�

Broker compensation

�

Commitment Fee

�

Doc Prep fee - for lender (note, mortgage)

�

Du Underwriting Fee

�

Escrow waiver fee

�

Lenders inspection Fee

�

Loan handling fee

�

Loan level price adjustments

�

Mortgage Broker Fee

�

Origination fee

�

Overnight, wire, courier

�

Paid by borrower

�

Points

�

Processing fee

�

Rate Lock Extension

�

Rate Lock Fee

�

Tax Transcript fee (4506T fee)

�

Underwriting Fee

�

Verification of Employment Fee

�

Warehouse Fee

�

Blue no tolerance fee

All other escrow deposits

�

Escrow deposit � homeowners ins

�

Escrow deposit � flood insurance

�

Escrow deposit � MIP/PMI

�

Escrow deposit � taxes

�

Blue no tolerance limit

Commission - Real Estate

�

Credit Life & Disability Insurance

�

Debt cancellation coverage

�

Debt suspension coverage

�

Homeowners Association and Condominium fees associated with transfer of ownership (optional)

�

Inspection fees not required by lender but paid for by borrower under real estate contract

�

Payments to Seller for purchasing personal property under RE sales contract

�

Title Insurance - Owner (optional)

�

Warranties for home appliances and systems (optional)

�

Appraisal Fee

�

Appraisal Management Company Fee

�

Attorney Fees �lender

�

Credit Report Fee

�

Flood Determination

�

Flood Monitoring Fee

�

Homeowners Association Certification fee

�

MERS Registration fee

�

Notary fees

�

RD guaranty fee

�

Subordination fee

�

Survey (required and selected by Lender)

�

Tax Monitoring Fee

�

Tax Status Research Fee

�

Termite inspection (lender selects)

�

Title - closing protection letter fee Upfront FHA MIP

�

Title Review fee

�

Transaction fee

�

USDA guarantee fee

�

VA Funding Fee

�

GREEN 10% Tolerance

Inspection Fee

�

Settlement or Closing Fee

�

Survey (Required by lender, borrower selects)

�

Termite inspection fee (borrower shops)

�

Title - underwriter portion of fee

�

Title Agents Portion of Title Insurance

�

Title Insurance � Lender

�

Title Search

�

Title services & Lenders title policy

�

Assignment Recording Fee

�

County deed stamps

�

Other recording fees

�

Revenue Stamps paid by Seller

�

Subordination Recording Fee

�

Earthquake Insurance (if required)

�

Earthquake Insurance (optional)

�

Flood Insurance

�

Homeowners Insurance

�

Interest � prepaid

�

LPMI (Lender Paid Mortgage Insurance)

�

Mortgage Insurance Premium (Paid at closing)

�

Real Estate Taxes

�

�

Tax Transfer Fee

One final type of fee subject to zero tolerance is transfer taxes. In general, transfer taxes are State and local government fees on mortgages that are based on the loan amount or sales price. Note that the name used under State or local law to refer to these amounts is not indicative of whether they are disclosed as transfer taxes or as recording fees and other taxes. With respect to transfer taxes, the Consumer Financial Protection Bureau has commented that those schedules are readily accessible and amounts don�t often fluctuate. Therefore, it is believed that creditors should be able to disclose transfer taxes accurately and not need any tolerance cushion.