TRID Tolerance Rules: Which Closing Costs Can Legally Increase

Zero-tolerance fees: no increase permitted

Zero-tolerance fees are those entirely within the lender's control or where the fee was known precisely at the time of the Loan Estimate. Any increase in these fees between the LE and the CD requires the lender to issue a cure — a refund of the excess — within 3 calendar days of closing.

• All origination charges (points, origination fee, application fee, underwriting fee)
• Transfer taxes
• Fees for required services where borrower was not permitted to shop (Section B)
• Lender credits (if the credit decreased, the difference is treated as a cost increase)

10% tolerance fees: limited aggregate increase

The 10% tolerance category covers fees for required third-party services where the borrower was permitted to shop but chose a provider from the lender's written list. The aggregate total of all 10%-tolerance fees on the CD cannot exceed the aggregate on the LE by more than 10%.

Individual fees within this group can increase or decrease — what matters is the total. If the combined increase exceeds 10%, the lender must cure the full excess. If you shopped outside the lender's list and chose your own provider, that fee moves to the no-tolerance category.

• Recording fees
• Required pest and other inspections
• Title services (when borrower chose from lender's provided list)
• Settlement agent fees (when chosen from lender's list)

No-tolerance fees: can change without limit

Some fees have no tolerance limit because they depend on variables that weren't fixed when the LE was issued. These can change significantly and the lender has no obligation to cure the increase:

• Prepaid interest (changes with the actual closing date)
• Property insurance premiums (you choose the insurer)
• Homeowner's association dues and charges
• Fees for services not required by the lender
• Fees for third-party services where the borrower chose a provider NOT on the lender's list

When TRID rules are reset: valid changed circumstances

Lenders are permitted to issue a revised Loan Estimate if a valid 'changed circumstance' occurs after the original LE. This resets the tolerance baseline to the revised LE. Valid changed circumstances include: acts of God affecting the property, new information discovered after application (e.g., a different loan amount the borrower requested), boundary disputes discovered in title search, and natural disasters.

Changed circumstances do NOT include: the lender finding out information it should have asked for at application, interest rate changes (rate changes don't affect tolerance on fees), or general market changes. If your lender issued a revised LE that you believe was not triggered by a legitimate changed circumstance, you can challenge the revised fee baseline.

If you believe your lender violated TRID tolerances, document the discrepancy in writing and request a cure before closing. If refused, file a complaint with the CFPB.