We are originating Illinois Housing Development loans (IHDA) and closing them in our name and assigning/selling the servicing to another bank because the IHDA program requires this other bank to service these loans. The other bank is charging us a "servicing transfer fee" of $150. IHDA tells us we can pass this fee on to the borrower. We are not retaining any of the fee. Can anyone tell me where this type of fee goes on the GFE and HUD? We believe that it is a finance charge. Thanks very much!!!

I suggest you post this in the Illinois Forum too. This is one time double posting may get you more responses.

Did IHDA tell you were to put the charge or if they thought it was a finance charge?

The "other bank" (servicing bank) told us that it was a finance charge. IHDA contact tells us they don't know enough about RESPA to provide any information. Thanks for the suggestion - I will post in Illinois forum as well.

It likely is a FC...placement is either going to be Block 1 or 3...my gut says Block 1.

Thanks to both of you - I appreciate your help!