What is the period allowed to provide a refund for a tolerance violation on the Loan Estimate?

The correct period for providing a refund for a tolerance violation on the Loan Estimate is 60 days after consummation. This time frame is crucial because it aligns with the regulations set forth in the Truth in Lending Act and the Real Estate Settlement Procedures Act, which are designed to ensure that borrowers receive accurate disclosures about their mortgage costs.

In cases where there is a tolerance violation, meaning that certain disclosed fees exceed the allowable tolerance levels outlined in the Loan Estimate, the lender is required to issue a refund if the actual charges are higher than the estimated charges. The 60-day period provides borrowers with an adequate amount of time to address any discrepancies and ensures that lenders comply with regulatory requirements to maintain transparency and accountability in the lending process.

Understanding this timeframe helps loan officers ensure they follow the law correctly and promote trust in their professional relationships with clients. The other durations provided do not align with these regulatory requirements, making them incorrect for this specific question.