Our bank pays a third party to perform inspections on our construction loans. These fees are disclosed as a finance charge. Are the lender inspection fees disclosed in Block 1 under origination charge on the GFE when they are paid to a third party, or do they go under Block 3?

Block 3. From the 4/2/10 FAQs.

Q: What services belong in Block 3, "Required services that we select"?
A: Block 3 of the GFE contains the charges for all third-party settlement services (except title services) for which the loan originator requires and selects the provider of the service. Examples of these charges for services generally include but are not limited to, appraisal, credit report, tax service, flood certification and up-front mortgage insurance premiums.

We only show the fee in Block 1 if we perform the inspection.