Do the appraisal fee and credit report fee need to be disclosed on the LE if the lender is paying these fees? We currently show the fees on the LE with a Lender Credit for the fees. Do we need to show them on the LE since the borrower is not required to pay?

You can go either way on those fees when the bank intends to pay for them. What you can't do if you disclose a lender credit on the LE is reduce your lender credit at closing if the appraisal or credit report fees end up being lower than you estimated.

Of course, those fees have to appear on the CloD, regardless of who pays them.