Which of the following is NOT included in the Zero Tolerance items on the Loan Estimate?

Zero tolerance items on the Loan Estimate are fees that cannot change at closing in comparison to what was disclosed on the Loan Estimate. Specifically, these items have a strict limit and must match the initial estimate exactly.

Choosing closing costs as the answer is correct because closing costs often include a variety of fees, some of which may be subject to variation. For example, items such as title insurance and escrow fees can fluctuate based on the final negotiated agreements, hence making them not strictly governed under zero tolerance rules. In contrast, other items like appraisal fees, transfer taxes, and lender fees have more stringent regulations and generally fall under the zero tolerance category, meaning they cannot change from what was estimated.

This classification system is essential to ensure transparency for borrowers, allowing them to understand exactly what they will be paying at the closing table. Therefore, while many fees do fall under zero tolerance, closing costs as a broad category do not, leading to the identification of this option as the correct choice.