We have a loan where the processor gave a credit in box 2 on the GFE for a previously used and paid for item (credit report). This item should have been listed in Box 3 on the GFE and listed as p.o.c. on the HUD. My question is, since we can not reduce the credit in box 2; Is it okay to show it both ways on the HUD as a credit and as p.o.c. which would result in the total settlement charges being less because the amount would not be listed in the borrower's column?; Or should it stay as an error and reflect the way it was shown on the GFE.

Looks to me like it would be listed in on the HUD as a credit in 802 (which doesn't specify what for - it's just a credit) and as POC on 803. Basically you just gave the borrower money.

BTW, you should be glad it was the credit report fee, one of our loan officers did that with the appraisal.