Final answer:
The tolerance amount for an Appraisal Fee is A)0%. This means there should be no difference between the fee originally quoted and the final fee charged, except under rare, specific circumstances as allowed by RESPA and Regulation X.
Step-by-step explanation:
The tolerance amount for an Appraisal Fee typically falls under a category where there is not allowed to be any discrepancy between what is initially quoted and the final fee.
Therefore, the correct answer is A) 0%. Appraisal fees are part of the zero tolerance category in the Loan Estimate and Closing Disclosure.
In mortgage lending, certain fees are subject to regulation by the Real Estate Settlement Procedures Act (RESPA) as implemented by Regulation X.
According to these regulations, the appraisal fee is one that cannot increase from the original Loan Estimate to the Closing Disclosure except under certain rare circumstances.
This means that the tolerance level for changes is effectively zero percent, indicating that the amount quoted for this fee should be the amount charged unless there's a change of circumstance as defined by Regulation X.