| name | closing-disclosure-tolerance |
| title | Closing Disclosure Tolerance |
| description | Applies U.S. TRID tolerance rules to compare a residential mortgage Closing Disclosure (CD) against the controlling Loan Estimate (LE). Classifies fees by tolerance bucket, validates changed-circumstance resets, computes violations, and calculates cure amounts. Use when reviewing LE-CD variance, 10% tolerance, revised LE validity, changed circumstances, tolerance cure, or pre-closing compliance QA. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/closing-disclosure-tolerance |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | finance |
| language | en |
Closing Disclosure Tolerance
Structured TRID tolerance review for U.S. residential mortgage closings under 12 CFR Part 1026. Covers fee classification, zero/10%/unlimited tolerance testing, changed-circumstance gating, and cure calculation.
Prerequisites
- Most recent valid LE as baseline, plus any revised LEs with issue dates
- Final CD with borrower-paid fees by line item and payor category
- Fee taxonomy tags: creditor, broker, affiliate, third party, borrower-selected from lender list
- Loan timeline: rate lock date, lock expiration, consummation date, LE delivery dates
- Documentation for post-LE events (appraisal updates, title defects, borrower requests, delays, lock changes)
- Jurisdictional scope: federal TRID baseline plus any state overlays
Core Workflow
1. Normalize baseline
Use the most recent valid LE as of CD generation. Ignore invalid prior LEs unless a valid revised LE was triggered.
2. Classify each CD fee
| Fee Class | Examples | Bucket |
|---|
| Creditor/Broker | origination, application, processing, underwriting, points, broker fees | Zero |
| Affiliate | affiliate title, appraisal, other affiliate compensation | Zero |
| Transfer Taxes | state/local transfer, documentary, mansion taxes | Zero |
| Cannot-Shop Services | lender-required appraisal, credit report, flood determination | Zero |
| 10% Cumulative | recording, lender-list shopped title/settlement/inspection/legal | 10% cumulative |
| Unlimited | prepaid interest, insurance premiums, HOA, initial escrow, optional services | Unlimited |
3. Zero-tolerance test
Test each zero-tolerance fee at the line-item level:
- Variance = CD Amount − LE Amount
- Pass: every zero-tolerance item has variance ≤ 0
- Fail: any item has variance > 0
4. Ten-percent cumulative test
Aggregate all 10%-bucket items:
- LE Total = Σ(LE amounts)
- CD Total = Σ(CD amounts)
- Limit = LE Total × 1.10
- Pass: CD Total ≤ Limit
Do not test 10% items individually — this is a category-total test.
5. Unlimited-tolerance review
