At the urging of industry groups, the CFPB indicated that it will concentrate on merging the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending regulations before finalizing the Good Faith Estimate form that consumers get three days after signing a mortgage application.

Right now, there is a 10 percent tolerance on cost estimates when a lender recommends an independent settlement servicers provider to the borrower. If the final cost exceeds 10 percent, the lender must pay the difference. The bureau wants to move to a zero-tolerance level.

Richard Andreano, who heads Ballard Spahr’s Mortgage Banking Group, said zero tolerance would create greater risk for lenders. In creating the 10 percent tolerance, HUD assumed a lender would be familiar with the provider’s standard charge. However, the lender has no control over final costs, so the 10 percent tolerance is reasonable, Mr. Andreano told the publication.