What is the responsibility for discrepancies in charges to record documents over 10% between the Loan Estimate and Closing Disclosure?

In real estate transactions, the Closing Disclosure (CD) and the Loan Estimate (LE) are key documents that provide transparency regarding the costs associated with obtaining a mortgage. Under the regulations set forth by the Consumer Financial Protection Bureau (CFPB), lenders are responsible for ensuring that the charges disclosed in the Loan Estimate closely match those in the Closing Disclosure.

When there are discrepancies exceeding a 10% variance between these two documents, the lender bears responsibility for addressing those differences. This means that if the final charges to record documents, or other fees, increase more than 10% compared to what was initially estimated in the Loan Estimate, the lender must correct the situation to comply with federal regulations. The lender is held accountable to ensure that borrowers are not surprised by sudden increases in costs that weren't disclosed upfront.

The other parties, such as the buyer or seller, do not have this specific obligation regarding discrepancies between the LE and the CD, as it is primarily a regulatory mandate directed at lenders. The listing licensee also does not hold responsibility for these specific financial discrepancies between the loan documents. Therefore, the lender is the only party responsible in this context.