We have a situation whereas the appraisal was a transfer from another lender. The borrower paid for the appraisal in advance.
However, the loan officer never disclosed the fee on the LE. Do we need to cure this since it was never disclosed even though the amount was already paid by the borrower before he started the process with us??

No. The fee was not paid as a condition of this loan.

Equate it to this situation. You disclose a survey fee on the LE because you need one. During the underwriting process, the borrower produces an acceptable survey that was conducted 10 years ago. You don't ask them how much they paid for the survey ten years ago and disclose that as paid outside of closing.

perfect. Thank you very much Randy! appreciated.