Final answer:
The appraisal fee is considered a 'zero tolerance' fee under the TRID rule, meaning it cannot increase from the Loan Estimate to the Closing Disclosure without a valid change in circumstance.
Step-by-step explanation:
Under the Truth in Lending Act (TILA)-Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule, commonly known as TRID, certain fees are subject to 'zero tolerance' restrictions. The appraisal fee is indeed considered a zero tolerance fee, meaning that the amount disclosed for the appraisal fee on the Loan Estimate cannot increase in the final Closing Disclosure unless there is a change in circumstance that permits a revision of the fee. If a revision is needed, the lender must provide a revised Loan Estimate or Closing Disclosure with the increased fees. It is important for both lenders and borrowers to understand which fees can and cannot change from the Loan Estimate to the final costs.
No, under the TRID (TILA-RESPA Integrated Disclosure) rules, the appraisal fee is not considered a "zero tolerance" fee. The TRID rules regulate the disclosure and timing requirements for residential mortgage transactions in the United States.
The TRID rules define "zero tolerance" fees as fees that cannot increase from the amount disclosed on the Loan Estimate (LE) to the amount charged at closing. These fees include the lender's charges, such as origination and processing fees, that are paid to the creditor or an affiliate.
However, the appraisal fee is considered a "can change" fee, which means it can increase from the amount disclosed on the LE to the amount charged at closing. This is because the appraisal fee is typically paid to a third-party appraiser and is not directly paid to the creditor or an affiliate.