We are incorporating an "application fee" which is collected up front at application, but after early disclosures are provided. The fee is collected to pay for Flood determination, appraisal, credit report, etc.

How should the app fee be referenced on the GFE and when we itemize the cost for the third party orders, it seems as though we would be duplicating charges.

You are simply collecting the lump sum fee FOR flood, appraisal, credit report, etc. You itemize these fees separately on the GFE and eventually on the HUD 1. The amounts will be shown POC on the HUD 1 and any overage will be shown as a credit while any deficit will be shown in the charges column.

So as long as we are itemizing the fees for credit reports, appraisals, flood, etc. we wouldn't even need to put the app fee on the GFE...correct?

If that's how you are using it, correct. Itemize the separate fees, collect one lump sum.

Tagging on to this thread with an additional question...that credit (i.e. when you collect say $400 for the appraisal fee up front, but the cost ends up being just $300) - can you show that like this on the HUD - ($100) on line 803 with the POC portion to the left, or do you have to show the credit on the first page of the HUD?

The appraisal did not cost ($100), it cost $300 which was POC.

You would show the $100 as a credit unless you applied it to another fee(s) as being POC.

Thank you! They were listing both - since the borrower paid $400 outside of closing up front, that's what they listed to the left of the column as POCB, then they put ($100) in the paid from borrower's funds column. Not sure why the did this one differently - usually they show it as a credit on the front page of the HUD-1, but it may have changed with some recent updates in the system they are using.