Ok, I'm confused. I am looking at the RESPA GFE & HUS 1 charges table that is posted in bankers tools and it states that YSP in Block 1 and Block 2 are not APR items. I understood that all items in Block 1 (line 801 HUD) were included in the APR. Can someone help?

You cannot make a blanket statement that all items in Block 1 are finance charges that affect the APR. For example, if a lender has an in-house Appraisal Dept. the cost of the appraisal charged to the borrower when an appraisal is conducted by an in-house appraiser is a block 1 item. Under Reg. Z for real estate secured transactions you exclude appraisal fees from the finance charge as long as they are reasonable and bona fide in amount.

You need to review each item that is going into block 1 and determine whether it is a finance charge under Reg. Z.

Thank you for responding. Sorry I know this must be an elementry question, but could you give me an example of YSP in Block 1 that are or are not included in the APR?

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