| name | cd-tolerance-reference |
| title | TRID CD Tolerance Reference |
| description | Guides the agent through TRID tolerance compliance under 12 CFR § 1026.19(e)(3), comparing Closing Disclosure fees to Loan Estimate fees across zero, 10% cumulative, and unlimited tolerance categories. Use when reviewing a CD for tolerance variances, determining whether a revised LE is permitted, calculating cure amounts, or resolving post-closing tolerance violations. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/cd-tolerance-reference |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | finance |
| language | en |
| tags | ["analysis","policy","regulatory","transactional"] |
TRID CD Tolerance Reference
Determines whether CD fees comply with TRID tolerance limits set by the most recent valid LE, and calculates any required cure.
Prerequisites
- Most recent valid LE (original or revised) with line-item fees
- Final CD with line-item fees
- Lender's written list of service providers (classifies shopped services)
- Documentation of any changed circumstances supporting a revised LE
Tolerance Categories
Authority: 12 CFR § 1026.19(e)(3). Always compare CD fees to the most recent valid LE.
| Category | Rule | Measurement |
|---|
| Zero | Cannot increase at all | Per item |
| 10% Cumulative | CD category total ≤ LE total × 110% | Aggregate |
| Unlimited | May change freely (good faith at LE required) | None |
Zero Tolerance (0%)
Any increase from LE to CD is a violation requiring cure.
| Category | Examples |
|---|
| Creditor/broker fees | Origination, application, underwriting, processing, discount points, commitment, rate lock |
| Affiliate fees | Any fee to entity affiliated with creditor/broker |
| Transfer taxes | State/local transfer taxes, mansion tax, documentary stamps |
| Services borrower cannot shop | Appraisal (creditor-selected), credit report, flood determination, tax monitoring |
Compliant: every item variance ≤ $0. Any positive variance = cure amount.
10% Cumulative Tolerance
Measured as category aggregate, not per item.
| Category | Examples |
|---|
| Recording fees | Deed recording, mortgage recording, other recording |
| Shopped services from lender's list | Title policies, title search, settlement/closing fee, notary, survey, pest inspection, settlement attorney |
If borrower chose a provider not on lender's written list, that fee moves to unlimited tolerance.
Cure calculation:
- Maximum permitted = LE total × 110%
- Excess = CD total − maximum permitted (if positive)
