I read in one the posts that a document preparation fee is not a finance charge if the fees are bona fied and reasonable. Does it matter if the Bank charges and retains the fee? We have been including the fee as a finance charge only when we retain the fee.
What about a final construction appraisal fee or inspection fee done by an appraiser. Is it a finance charge?

thanking you in advance

Its a finance charge if the lender is charging it (regardless of who its payable to). If the closing agent charges it, it is NOT a finance charge. Once again if the lender is charging the inspection fee then it would be a finance charge, if the lender was going out to do the inspection. If the appraiser is doing the inspection, then no.

Your regulators "Consumer Compliance Handbook" should have a good chart / flowchart / whatever you want to call it.
It is a great resource for what is included and when.

Here is link for OTS & it is on page 10
http://www.ots.treas.gov/docs/4/422227.pdf