Just wanted to verify something. Our credit report fee is listed as a lender credit on the Loan estimate, on the closing disclosure we list it under J line 1. It does not appear under line 2, lender credits.
Do we need to count the credit report fee as a lender credit for HMDA?

I don't understand, you mean you list it under Paid by Others?

Yes, the bank pays the credit report fee so it's under the paid by others in line one of J.

Your question is a little confusing as written, at least to me. You say you list your credit report cost under lender credits for the LE, but under Closing Cost Subtotals (Sec. J, Line 1) on the CD and not Lender Credits??

Either way, the lender credits that are reported for HMDA purposes are specifically the amount listed under the "Lender Credits" line on the CD (correlating to Reg. Z Sec. 1026.38(h)(3)).

I may be misreading your question, so please clarify if so - thanks!

That is correct. We list the credit report under lender credits as a negative and also under services you cannot shop for on the loan estimate.
On the closing disclosure it's listed as a positive under (Sec. J, Line 1).

I have to admit, I'm not TRID expert so pardon what I'm sure is a silly question - but why wouldn't the credit report still be included as a Lender Credit on the Closing Disclosure if you're paying for it? Or are you saying the borrower pays it at closing?

Again, whatever shows up in the "Lender Credits" line on the CD (correlating to Reg. Z Sec. 1026.38(h)(3)) is what's supposed to be reported for HMDA purposes.