I have been informed that the Bank wants to offer a fee discount on all HE products (both open and closed end). however they want to be able to recoup the fee if the loan/line closes within 3 years. How could we possibly disclose this?

Can you put a prepayment penalty on it?

First stop is State law to see if it is even legal in the States that you operate. Second stop, is your attorney to help draft the claw back provisions in the note and security agreement.