Final answer:
When a fee on the closing disclosure exceeds the originally stated amount on the loan estimate beyond the allowable tolerance, the creditor must refund the overcharged amount within a certain period.
Step-by-step explanation:
If a fee amount documented on the closing disclosure is greater than what was originally stated on the loan estimate and exceeds the permitted tolerance threshold, the creditor is required to refund the excess funds to the borrower within a specified time frame. This requirement ensures that borrowers are not unfairly charged more than the amounts disclosed to them during the loan estimation process. Moreover, this reflects compliance with regulatory requirements meant to protect consumers in the lending process.