Is it okay to charge customers for RE property valuations completed in-house?

No, this would be a part of your Origination Fee. RESPA directs that all fees collected by "you" be included in the Origination fee

So the fee can be included in the originaton fee total then? Or you just can't do it, plain and simple. For a little background, we are looking at using a service that will help with determining comps. The bank will have to pay for this service and I want to know if we can relay a flat fee for an in house valuation to all customers in which we use this service in determining the valuation.

I am interested to hear more feedback on this one, because we charge for commercial RE valuations that are done in-house. For residential we use an outside vendor and don't charge.

Allowable fees on real estate transactions are governed by State law.

Federal regulations do not prohibit you from charging a fee for in-house evaluations but as Randy states you need to verify there are no prohibitions found in state law. There are none in the state of IN.

The fee you charge for the in-house evaluation would be disclosed in Block 1 of the GFE and Line 801 of the HUD. The fee would not be a PPFC but it would be included in the fees and charges test for HOEPA.