Just wanting some validation here...

Lender does not obtain tax services and therefore no tax service fee is charged (nothing on GFE or HUD).
However (don't you love that word ), the investor to which the loan is sold after consummation DOES require the service. As part of their fee to purchase the loan, the tax service fee is included.

Improper disclosure? Or leave it be?

It is part of the secondary market transaction.

Thank you, Randy!

Depends on whether you want to eat the fee on the backend or reimburse yourself for it.

Well, the fee the investor charges to purchase the loan is being lumped in with the origination fee. That's where it is recouped.
Is that wrong? It's included in Block 1 - Line 801. Or should it be Block 3? I think no on 3. It's a cost to originate the loan, no?

If you recoup the charge in your origination charge then it belongs in 801.

So, if the lender charges $X and the broker comp is $X and the investor is charging $X, would you be required to have the investor cost included in the lender fee or have it as it's own charge but still included in the lump of what shows in Block 1 - Line 801?

Lender - $500
Broker Comp - $1500
Investor Fee - $250

Block 1 = $2250 ?????

These are all origination fees. How the bank spits them out among the parties does not impact the GFE or HUD-1.