The origination fee on the Loan Estimate has what type of tolerance?

The origination fee on the Loan Estimate falls under a zero tolerance category. This means that the fee is locked in and cannot change at all from the Loan Estimate provided to the borrower to the final closing costs. If the origination fee increases after the initial estimate, it would be considered a violation of the Real Estate Settlement Procedures Act (RESPA) and the TILA-RESPA Integrated Disclosure (TRID) rule.

In contrast, other fees listed on the Loan Estimate may have different tolerance levels, such as a 10% tolerance for certain services that the borrower can shop for. However, origination fees are unique in that they are completely fixed once disclosed, ensuring that consumers can trust that the quoted costs will not change, thus promoting transparency in the mortgage process.