The regulation and commentary themselves seem to go at this question from both sides. The regulation in 1026.37 repeatedly says you disclose costs that the consumer will, or is likely to pay.and that you don't include costs that you know will be paid by the seller. But there is language in the prefatory text that accompanied the rule to publication that says that when disclosing a "no cost" loan, in order to provide the loan-shopping consumer with meaningful cost comparisons (and because the costs for a "no cost" loan are typically "buried" in the rate). you should disclose the costs of services and include a general lender credit on the loan estimate.

I'd come down on the side of omitting the cost for an employee loan, since it is a waived cost.

The bank currently offers an employee discount on mortgage loans. The bank waives the origination fee (a specific credit).


Then there is no origination fee. No fee = no credit.

Thank you both gentlemen! I'll go back and read through the prefatory text and discuss with our team. Appreciate the information!!

Randy's right. A bank can waive its own fees, and they would not need to be disclosed. If, however, the bank said it would pay the appraisal cost (payable to a third party) for employee loans, that payment (to the third party) still has to be made, and I'd be sure to disclose the fee and a lender credit.

Thank you both!!! In this case under the employee loan program the fee is waived, so we will not disclose. For other promotions we have done we have done the separate specific credit. Thank you very very much!!!