Our mortgage department is setting up to take credit cards to pay loan fees (credit report and appraisals). They want to charge a fee for this "convenience". If the customer opts to pay by credit card, does this fee need to be disclosed on the LE and the CD? Obviously the LE would already be issued, but would we need to reissue an LE with the fee due to a customer request? Or does this fee need to be disclosed on the LE? I'm going back and forth on this...

It will most likely violate your merchant agreement and possibly State law. You can give a discount for cash payment but you normally cannot add a service charge for the use of a credit card. Yes - it is disclosable on the LE and yes it is a finance charge and yes it is a ridiculous fee if you ask me.

I agree and am hoping to just have them absorb it as part of overhead.