Important: Actual fees, exact names, and applicability can vary by lender, locality, and specific state laws. Always verify with local/state regulations and lender requirements.

Overview of Tolerance Categories

Under the TILA-RESPA Integrated Disclosure (TRID) rule, fees fall into one of three categories regarding tolerance for changes between the Loan Estimate (LE) and the Closing Disclosure (CD):

• Zero Tolerance: These fees cannot increase from the LE to the CD unless there is a valid “changed circumstance.” Typically includes fees paid to the creditor, mortgage broker, or an affiliate of either, as well as transfer taxes.
• 10% Cumulative Tolerance: The total of these fees, in aggregate, cannot increase by more than 10% from the LE to the CD. Typically includes certain third-party fees when the consumer uses a provider on the lender’s written list of service providers and does not choose a provider outside that list.
• No / Unlimited Tolerance: These fees can change by any amount. Typically includes fees for services that the consumer shops for independently (choosing a provider not on the lender’s list), prepaid interest, or amounts paid into escrow.

1. Section A: Origination Charges

These are fees paid to the lender or broker for originating the loan.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Points (Discount Points)	A fee paid to buy down the interest rate, typically quoted as a percentage of the loan amount.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Application Fee	A fee the lender or broker charges to process the initial application.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Underwriting Fee	Charged by the lender for reviewing and approving the loan.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Processing Fee	Covers the lender’s cost of gathering documents and verifying information.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Broker Fee	A fee paid to a mortgage broker for arranging the loan.	All states	Zero Tolerance (if paid to a broker affiliated with the lender)	Cannot increase from LE to CD unless a valid changed circumstance applies.

2. Section B: Services You Cannot Shop For

These services are typically required by the lender, and the borrower has no choice of provider.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Appraisal Fee	Cost for a licensed professional to estimate the property value.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Credit Report Fee	Cost of pulling credit report(s) from the bureaus.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Flood Determination Fee	Fee to determine if the property is in a flood zone (FEMA requirement).	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Flood Monitoring Fee	Ongoing monitoring to ensure updated flood zone status over time.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Tax Monitoring Fee	Service that monitors property tax payments and tax status.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Tax Status Research Fee	Confirms any outstanding tax liabilities or delinquencies on the property.	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.
Mortgage Insurance (MI) Application Fee	Fee for processing the loan’s mortgage insurance (if required).	All states	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance applies.

3. Section C: Services You Can Shop For

These are required services, but the borrower can choose the provider. If the consumer chooses a provider from the lender’s written list, these fees typically fall under the 10% tolerance category. If the consumer chooses a provider not on that list, fees often fall under no tolerance limit.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Pest Inspection Fee	Inspection for termites/wood-destroying organisms if required by the lender or loan program.	Varies by region; typically all states may require if program/lender does.	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Up to 10% aggregate change with other 10% fees if chosen from the list; unlimited if chosen outside the list.
Survey Fee	Survey of property boundaries, improvements, etc.	All states (some states or lenders require, some do not)	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Same approach as above.
Title – Search / Abstract Fee	Fee to research property title history.	All states (title requirements vary)	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Same approach as above.
Title – Settlement / Closing Fee	Fee paid to the title or escrow company for conducting the closing.	All states (escrow vs. attorney closings vary by state)	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Same approach as above.
Title – Lender’s Title Insurance	Insurance policy protecting the lender’s interest in the property’s title.	All states (cost, rules vary significantly by state)	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Same approach as above.
Title – Other Title-Related Fees (Endorsements, Binder, etc.)	Endorsements, document prep, or other title-related services required by the lender.	All states (some states require specific endorsements)	10% Tolerance if chosen from lender’s list. No Tolerance Limit if chosen outside the list.	Same approach as above.

4. Section E: Taxes and Other Government Fees

Government fees often carry zero tolerance if they are transfer taxes. Recording fees may have a 10% tolerance depending on how the lender discloses them. State and local laws vary considerably.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Recording Fees	Fees charged by local government for recording the deed, mortgage, and other legal documents.	All states	10% Tolerance or Zero Tolerance (depends on how disclosed)	Often part of the 10% tolerance group if borrower cannot shop. Could be Zero Tolerance if the lender lumps it differently. Confirm with the lender’s disclosures.
Transfer Taxes	Taxes imposed by state or local government on property transfer.	Many states (NY, FL, CA, etc.)	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance occurs.
State-Specific Mortgage Taxes	E.g., New York Mortgage Tax, Florida Documentary Stamp Tax, Georgia Intangible Tax.	Varies by state (NY, FL, GA, etc.)	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance occurs.
County/City Stamp Taxes	Local-level stamp duties or taxes on mortgages or deeds.	Certain states and counties (e.g., parts of MD, VA)	Zero Tolerance	Cannot increase from LE to CD unless a valid changed circumstance occurs.

5. Section F: Prepaids

These are items that must be paid before or at closing to set up the loan. They generally fall under No / Unlimited Tolerance rules because they are influenced by the closing date, insurance quotes, and borrower choices.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Homeowner’s Insurance Premium	Premium for the first year (or portion thereof) of homeowner’s/hazard insurance.	All states	No / Unlimited Tolerance	Amount can change (depends on insurer, final closing date, etc.).
Mortgage Insurance Premium	If applicable, upfront mortgage insurance (e.g., FHA, USDA, private MI).	All states	No / Unlimited Tolerance	Subject to final loan specifics and program guidelines.
Prepaid Interest	Interest that accrues from the closing date to month-end (or until the first payment date).	All states	No / Unlimited Tolerance	Varies based on final closing date and interest rate.
Property Taxes (Prepaid)	Any property taxes due immediately or before the first scheduled payment.	All states	No / Unlimited Tolerance	Depends on local tax deadlines and the actual closing date.

6. Section G: Initial Escrow Payment at Closing

These amounts fund the borrower’s escrow account for future payments of taxes, homeowner’s insurance, mortgage insurance, etc. Generally, these also fall under No / Unlimited Tolerance, as they depend on timing and actual bills.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Homeowner’s Insurance Escrow	Initial deposit into escrow for upcoming insurance bills.	All states	No / Unlimited Tolerance	Based on exact closing date and insurance premium.
Mortgage Insurance Escrow	If applicable, deposit into escrow for MI payments.	All states	No / Unlimited Tolerance	Varies by the program and final date of closing.
Property Taxes Escrow	Deposit for property taxes that will be due in the future.	All states	No / Unlimited Tolerance	Determined by local tax schedule and closing date.

7. Section H: Other

Costs not required by the lender but that the borrower chooses to pay. These are almost always No / Unlimited Tolerance because they are optional or outside of lender control.

Fee Name	Description	States Where It Applies	Tolerance Category	Allowed Change
Owner’s Title Insurance	Optional insurance policy protecting the homeowner’s interest in the title.	All states (common, but not mandatory everywhere)	No / Unlimited Tolerance	Borrower’s choice. Cost and final decision can change at any time.
Home Warranty	Optional coverage for certain home systems/appliances.	All states	No / Unlimited Tolerance	Depends on the buyer’s selection and pricing.
Real Estate Brokerage Fees	Typically paid by the seller, but if the buyer has an arrangement with a broker, it might appear here.	Varies	No / Unlimited Tolerance	Can change based on contract negotiations.
HOA/Condo Association Fees	Might appear here if not collected in escrow or if needed upfront.	States with HOA or condo associations	No / Unlimited Tolerance	Varies by the association’s rules and the closing date.

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Key Points to Remember

• Zero Tolerance Fees: Lender/Broker fees (Section A) + Transfer Taxes (Section E) + any required services you cannot shop for (Section B).
• 10% Cumulative Tolerance Fees: Typically services you can shop for (Section C) if the borrower chooses a provider on the lender’s recommended list.
• No / Unlimited Tolerance Fees: Prepaids (Section F), Initial Escrow (Section G), any service the borrower shops for outside the lender’s list, plus optional services (Section H).
• State-Specific Fees: Transfer Taxes, Mortgage Taxes, Documentary Stamps, and other government-imposed fees vary widely. Some states use attorneys for closings, so attorney fees may appear differently.
• Changed Circumstances: Certain changes (e.g., loan amount, property type, borrower-requested changes) can allow zero or 10% tolerance fees to increase legitimately.

Final Caveat

While this table covers the most commonly encountered fees, actual disclosures can vary. Some fees may be combined or labeled differently by lenders. Always consult with a compliance expert or state-specific statutes for exact requirements, naming conventions, and any additional fees that may apply.