There are two fees of 25.00 each labeled "Overnight fee" showing in Section H of the Closing Disclosure- these fees are not paid to the lender/originator. The loan was a cash-out refinance and the overnight fees were paid to two creditors who were paid off with the proceeds from the refinance. Since the fees were not imposed by the lender should they be considered finance charges?

Did you require the loans to be paid off to make the loan?

Yes, borrower has to payoff debts to qualify.

Well, if paying off the debts is a requirement of getting the loan and I am sure that these overnight fees are being imposed by the bank as the bank is mailing out the payments, how is this an optional fee for the borrower and a Section H fee?

The fees are not paid to the bank/lender, they are paid to the recipient who is getting the payoff- Will dig deeper here.

Doesn't really make sense that you would pay the overnight delivery fee to the recipient of the payoff check.

Agreed, not sure what the deal was here