Would a charge for a home valuation search that we require on every HE Loan be listed in Block 3 of the GFE, or should it appear elsewhere?

Depends.
You conduct the service and charge for it Block 1,
You require the service and require the service provider Block 3,
You require the service and the borrower can select the service provider Block 6.

We require the service, and require the service provider, so as I thought, it is block three. Thanks for confirming!

Now I have another question. I have reviewed all of our Equity Loan GFE's and HUDs. The Block 3 charges are listed on the HUD, but one of the charges that we listed on HUD line 808 did not carry over to page 2 of the HUD due to a glitch in our system, therefore showing an incorrect % in the 'increase in fees from GFE to HUD' line on pg. 2. Since the charge is there, do we have a reimbursement issue if it didn't carry over to page 2?

IMO, no. I would rely on 3500.8(c) and issue a revised HUD with a letter of explanation. I would however make sure the problem is fixed so that you couldn't be questioned about it being an inadvertent error in the future. You know, the old "pattern and practice" thing.

Thanks Dan. I have already updated procedures, printed test HUDs that show the items correctly now, so my only concern was possible reimbursement. Thanks for the help!