What is included in the zero tolerance good faith level?

The zero tolerance good faith level refers to certain fees that cannot vary from the preliminary disclosure to the final closing statement. This means that certain fees, if disclosed initially, must remain consistent and cannot increase before closing.

The correct answer includes fees paid to the credit union or an affiliate and transfer taxes because these types of fees are considered "zero tolerance" charges. This regulation ensures borrowers are protected from unexpected increases in their closing costs, allowing them to better plan their finances and preventing any last-minute surprises during closing.

Other options do not align with the zero tolerance criteria as defined by the regulations. Fees paid to third-party service providers without limits can often vary, and property valuation fees typically fall under a different tolerance level allowing for some variation. Interest rates offered by lenders are also not considered within the parameters of zero tolerance, as they are generally subject to market conditions and can change. Understanding these distinctions is crucial for both lenders and borrowers in the mortgage process.