What type of fees does the Loan Estimate indicate are non-negotiable under TRID?

The Loan Estimate form, required under the TILA-RESPA Integrated Disclosure (TRID) rule, is designed to provide borrowers with a clear understanding of the costs associated with a mortgage transaction. Non-negotiable fees listed on the Loan Estimate are those that cannot be changed at the discretion of the lender or the broker and are typically required to be paid in a uniform manner.

Origination fees are considered non-negotiable because they are set by the lender as a defined cost for preparing and processing the loan application. This fee is part of the overall cost of borrowing and serves to cover the lender’s costs associated with underwriting and processing the loan. By keeping these fees non-negotiable, TRID ensures consumer protection and uniformity in loan disclosures.

In contrast, title fees, closing fees, and inspection fees can vary based on factors like the state’s regulations, the service provider selected, or negotiations between the parties involved. This flexibility allows buyers and sellers to negotiate these costs, leading to different amounts depending on the specific scenario.

Understanding which fees are non-negotiable is crucial for both borrowers and loan officers, as this knowledge helps in accurately assessing total borrowing costs and aids in budgeting for the home-buying process.