A Comprehensive Guide: Reviewing Closing Disclosure for

Compare Your Closing Disclosure to Your Loan Estimate

Tolerance Level	Description
Zero Tolerance	Fees not listed on your Loan Estimate.
10% Cumulative Tolerance	Fees that exceed 10% of the total closing costs from your Loan Estimate.
Unlimited Tolerance	Fees listed on your Loan Estimate but still subject to review for accuracy and justification.

Page 2 Fee Audit

Examine Section A and Section B for duplicate or vague charges such as origination, processing, underwriting, courier, document prep, and marked-up credit report fees.

• Origination fee: The lender's charge for processing your loan -- should appear once, not split into several smaller line items covering the same work.
• Processing/underwriting fees: Sometimes bundled into origination, sometimes broken out separately -- either is normal, but watch for both a bundled AND a separate charge for the same work.
• Courier/document prep fees: Legitimate in modest amounts, but a red flag if the amount jumped significantly from your Loan Estimate with no explanation.
• Credit report fee: Should roughly match the actual cost lenders pay for a credit pull ($30-$100 range) -- a marked-up credit report fee well above that range is worth questioning.

Escalation Module

When issues arise, follow these steps:

1. Cite the specific page, section, and line item.
2. Contact your loan officer and real estate agent.
3. Request a lender credit when justified.

Subject: Question About [Page/Section/Line Item] on My Closing Disclosure

Hi [Loan Officer Name],

I'm reviewing my Closing Disclosure and have a question about the fee listed on [page number, section letter, line item] for [fee name], totaling [amount]. This wasn't itemized the same way on my Loan Estimate (or wasn't listed at all). Could you confirm why this fee appears and whether it's within the tolerance rules, or let me know if a lender credit applies?

Thank you,
[Your Name]

Frequently Asked Questions

Get answers to common questions about reviewing your Closing Disclosure, including junk fees, differences between the Loan Estimate and CD, resets, and contact information.

Legal Compliance Caveat

This page is designed to be educational and informative. It does not provide legal advice or claim to do so. Always consult with a qualified attorney or financial advisor for personalized guidance.

What are junk fees and why should I watch out for them?

Junk fees are additional charges that may not be clearly explained or necessary for your mortgage loan. These fees can add up significantly and potentially increase the total cost of your loan. Examples include processing, document preparation, and administrative fees. It's essential to review your Closing Disclosure carefully to ensure you understand all fees and are not being charged unnecessary costs.

How do Loan Estimate (LE) and Closing Disclosure (CD) compare?

The Loan Estimate (LE) is an estimate of the closing costs and terms of a mortgage loan, while the Closing Disclosure (CD) is the final document that lists all fees, charges, and the total amount you will pay at closing. Although the LE provides an estimate, there may be differences between the two documents due to changes in the loan terms or additional fees that were not included in the initial estimate. It's crucial to compare both documents closely to understand any changes and ensure that you are prepared for the final costs.

Can my loan estimate reset after 3 days?

After receiving your Loan Estimate, you have a three-day review period during which the lender cannot change the terms of the loan (excluding rates) without giving you a new Loan Estimate and extending the review period. However, if you initiate contact with the lender during this time, the clock will reset, and the lender may provide you with a revised estimate based on your request or new information.

When should I contact my lender regarding errors or concerns in my Closing Disclosure?

If you notice any discrepancies or errors in your Closing Disclosure, such as unexpected fees or changes to the loan terms, it's essential to contact your lender as soon as possible. To ensure a smooth closing process, reach out to your loan officer and ask for clarification or corrections. It's better to address issues early on rather than waiting until the last minute to avoid potential delays or additional costs.