If fees for third-party settlement service providers are paid directly to a creditor or affiliate, the tolerance for differences between the estimated and actual charges is:

• A. 10%
• B. 5%
• C. 1%
• D. 0% (correct)

Answer: (D)

Under TRID, there are different tolerance levels for how much actual charges can differ from the estimated charges shown on the Loan Estimate. When third-party settlement service fees are paid directly by the creditor or an affiliate, those charges fall into a zero-tolerance category. In this situation, the actual charges at closing must match the estimated charges exactly; there’s no allowed variance. This happens because the lender or its affiliate controls these fees, so the borrower has no pricing choice for these services. If the charges differ from the estimate, the disclosures must be corrected and the borrower informed of the exact amount.