Compliance Q&A

What if the Lender does not provide an estimate of a particular fee that is later charged?


Lenders are provided flexibility in disclosing individual fees by the focus on the aggregate amount of all charges. A creditor may charge a consumer for a fee that would fall under the 10% cumulative tolerance but was not included on the Loan Estimate so long as the sum of all charges in this category does not exceed the sum of all estimated charges by more than 10%. (Comment 19(e)(3)(ii)-2).

For example, if the creditor requires lender’s title insurance, the creditor must disclose the service (i.e., lender title’s insurance) and the fee for the service. However, the creditor is not required to provide a detailed breakdown of all related fees that are not explicitly required by the creditor but that may be charged to the consumer, such as a notary fee, title search fee, or other ancillary and administrative services needed to perform or provide the settlement service required by the creditor

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