If the Bank has an attorney review a trust document prior to doing a loan (loan was made to a trust and the trustees as individuals), does the fee charged by the attorney for this service go in Block 1 of the GFE (and therefore line 801 of the HUD)?

If not, where does it go?

The bank had the attorney review the trust or did you call for a trust certificate on your approval?

If the bank opted for this service and they're going to pass it on to the borrower, it's a Block 1 fee. You'd need to have redisclosed for it within three days of deciding to do it. If you didn't, you will be curing for the entire amount which is like paying for it twice.

fwiw, we call for a certificate of trust which is just a letter that answers the five FNMA trust questions. The borrower contacts their attorney to provide it and usually pays for it outside of closing. It's minimal in cost too.

This is what is in the approval: "Trusts for the ownership entity to be reviewed by bank attorney with satisfactory findings prior to closing."

Does this belong in Block 1?

If the attorney works for the bank, block 1.
If the attorney is an independent third party that your bank hires to do things like this, I'd say Block 3.

If the attorney works for the bank, block 1.
If the attorney is an independent third party that your bank hires to do things like this, I'd say Block 3.

I would have to opine that in both these cases the attorney is performing origination services on behalf of the financial institution and the fee would be a Block 1 and Line 801 charge. See Q&A #9 on page 28 of the 4/2/10 RESPA FAQs.

Our deposit side of the bank is wanting to charge a fee for us to review the trust documents prior to opening up the deposit account. I am not sure this would be allowed. Can someone please weigh in on this? Would the answer be different if we were to have an attorney review rather than the bank? I believe the our attorney was going to come up with a check list for employees to utilize during the review.

I am not sure why this is posted in the RESPA forum, but allowable fees are a State law issue. If there is a trust review fee associated with opening a deposit account for a trust, it needs to be in your fee schedules and the applicant should be fully informed of the fee at the time of application.