Understanding TRID Fee Disclosures and Good‑Faith Requirements
The TILA‑RESPA Integrated Disclosure (TRID) rule, overseen by the Consumer Financial Protection Bureau (CFPB), was designed to bring clarity and transparency to mortgage lending. Its purpose is simple: to ensure borrowers receive accurate and understandable information about loan terms and closing costs early in the process so there are no surprises at closing.
Under TRID, lenders must provide a Loan Estimate. This document outlines projected loan terms and estimated closing costs. Zero‑tolerance fees are charges that generally cannot increase from the Loan Estimate to the Closing Disclosure. These typically include lender origination charges, certain third‑party service fees when the lender requires a specific provider, and government transfer taxes. In practical terms, these are the fees a loan officer is expected to know upfront and disclose accurately the first time.[1]
At closing, those estimates are compared to the final figures on the Closing Disclosure to determine whether the lender acted in good faith when initially quoting fees.
To measure good faith, TRID places fees into different categories that limit how much they can change during the loan process.
If these fees increase without a valid reason allowed under TRID, the lender is required to refund the difference to the borrower. This reflects the CFPB’s core principle that consumers should be able to rely on the cost information provided early in the loan process.[i]
TRID does allow lenders to revise their estimates when certain specific changes occur, such as borrower requests, rate locks, or other qualifying changes in circumstances. When properly issued within regulatory timelines, a revised Loan Estimate can reset the fee comparison.
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TRID issues can focus on whether the original disclosures were made in good faith, whether fee increases were justified by legitimate changes, and whether borrowers were charged more than TRID permits.
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At a high level, TRID’s tolerance framework serves as a consumer protection mechanism that promotes accuracy, accountability, and transparency in mortgage transactions. Understanding how good‑faith estimates and zero‑tolerance fees operate provides a foundation for evaluating compliance and potential violations in lending disputes.
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[i] CFPB Guidance on the Use of Best Information Reasonably Available
¹ See 12 C.F.R. §1026.19(e) and CFPB Official Interpretations (Commentary) regarding the requirement that disclosures be based on the best information reasonably available at the time of issuance.