Which of the following is NOT a tolerance category related to fees?

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In the context of mortgage lending, tolerance categories are used to establish how much certain fees can vary without impacting the loan or requiring additional disclosures to the borrower.

The categories typically recognized in the rule set forth by RESPA (Real Estate Settlement Procedures Act) include "Unlimited," which allows for no restrictions on fee increases related to title services and certain other costs; "Zero," which places strict limits on increases for specific services that are required to be used; and "10 percent," which permits a limited increase on fees that fall under certain conditions, allowing for a cumulative increase of up to 10% on specific items.

The option "Limited" does not represent an established tolerance category for fees in this regulatory framework. Instead, the other options reflect specific tolerances recognized within the guidelines, helping consumers know what to expect regarding fee changes. Therefore, recognizing that "Limited" is not an official tolerance category clarifies its status among the other valid categories.

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