Tolerance [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 3500.2 [Title 12. Banks and Banking; Chapter 27. Real Estate Settlement Procedures; Regulation X (24 CFR Part 3500)--Real Estate Settlement Procedures], the term tolerance means “the maximum amount by which the charge for a category or categories of settlement costs may exceed the amount of the estimate for such category or categories on a GFE (Good Faith Estimate).”