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Question 1 of 6

1. Question
A lender increases an underwriting fee at closing above the amount originally disclosed on the Loan Estimate. The fee is retained by the creditor.

How is this fee generally treated under TILA-RESPA tolerance rules?
- A) Fees retained by the creditor are subject to zero tolerance
- B) Creditor-retained fees are subject only to a 10% cumulative tolerance
- C) Creditor fees may increase without limitation
- D) Underwriting fees are exempt from tolerance requirements
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Question 2 of 6

2. Question
A creditor requires a borrower to use a settlement service provider but does not allow the borrower to shop for that service. The final fee exceeds the amount disclosed on the Loan Estimate.

Why could this create a tolerance violation?
- A) Borrowers are always required to shop for settlement services
- B) Fees paid to unaffiliated third parties are never regulated
- C) Fees paid to unaffiliated third parties are subject to zero tolerance if the creditor did not permit the consumer to shop for the service
- D) Settlement service fees are exempt from Loan Estimate rules
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Question 3 of 6

3. Question
A transfer tax charged at closing exceeds the amount originally disclosed on the Loan Estimate.

How are transfer taxes generally treated under federal tolerance requirements?
- A) Transfer taxes are exempt from tolerance rules
- B) Transfer taxes are subject to zero tolerance requirements
- C) Transfer taxes are subject only to a 10% cumulative tolerance
- D) Transfer taxes may change without limitation before consummation
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Question 4 of 6

4. Question
A creditor collects a fee from the borrower at closing but immediately passes the full amount to an unaffiliated third-party provider without retaining any portion of the charge.

How is this fee generally treated under the tolerance rules?
- A) The charge is considered retained by the creditor regardless of who ultimately receives the funds
- B) The charge is automatically subject to zero tolerance
- C) The charge is not considered paid to the creditor if the funds are passed through to an unaffiliated third party
- D) The fee is prohibited under TILA-RESPA rules
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Question 5 of 6

5. Question
A lender and title company operate under common ownership and control. During compliance review, regulators classify the title company as an affiliate of the lender.

How is the term affiliate generally defined for these rules?
- A) Any company that provides settlement services to a lender
- B) Any company that controls, is controlled by, or is under common control with another company
- C) Any company operating within the same state
- D) Only federally chartered financial institutions qualify as affiliates
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Question 6 of 6

6. Question
At consummation, the borrower pays settlement charges that exceed the applicable tolerance threshold disclosed on the Loan Estimate.

What must the creditor generally do under federal rules?
- A) Refund the excess amount to the consumer no later than 60 calendar days after consummation
- B) Provide a revised Loan Estimate after closing
- C) Refund the excess only if requested by the borrower in writing
- D) Apply the excess charges toward principal reduction
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