If we have a home equity product where the borrower pays all closing costs except the loan fee, are we required to list the loan fee as poc? In reading section 3500.7 of RESPA, it states that you would need to list as poc any payments made to affiliated or independent settlement service providers, so I would say that we would not be required to list this. If it is not a requirement, can we still list it as poc so the borrower sees that we are "waiving" this fee?

The GFE is to reflect any and all fees that are paid by either the borrower or the lender, whether paid directly or outside of closing. I would list the loan fee as poc.

How can you charge a "loan fee" on an equity loan and the borrower not pay for it? Who does????

You're right. This seems just another way of waiving a fee and trying to emphasis just how generous the lender is. You should not disclose it "POC" if you are not charging the fee.

Thank you...the loan department was trying to get across how "generous" they are in the transaction.