In the pre-TRID rule environment, property taxes, homeowners association dues, condominium fees, and cooperative fees that a borrower was required to pay in advance to the applicable parties (and not into an escrow or impound account) were not subject to a specific percentage tolerance. However, based on a typographical error in the supplementary information to the TRID rule, such charges were referred to as charges that were subject to tolerances in both the TRID rule and pre-TRID rule worlds. While that was unfortunate, the bigger problem was the TRID rule itself. Read the article……….
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