Review Fee for Mortgage Loan- Finance Charge?

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Question:

I am processing a mortgage loan and the borrower is using a title company that is not on our service provider list. Our attorney will review the documents and has a review fee for that. Is this a finance charge? Where on the HUD do I put that fee?

Answer:

It's part of your origination charges that should be disclosed in Block 1 and Line 801.

Review 226.4(c)(7) and its Commentary to determine if his document review fee would be exempt. It will depend what he is reviewing.

First published on BankersOnline.com 1/16/12