Would fees associated with construction inspections be subject to the customary and reasonable compensation standards established within Regulation Z 1026.42? Does it matter if the fee is charged on a construction loan (12 month, interest only drawn down line of credit) or if the fee is charged with a construction-to-perm loan (construction period followed by a P/I term loan)?

You use licensed or certified appraisers to do construction inspections?

Yes.

Bump

I do not believe that a construction inspection rises to this level.

(ii) Appraisal services. The term “appraisal services” means the services required to perform an appraisal, including defining the scope of work, inspecting the property, reviewing necessary and appropriate public and private data sources (for example, multiple listing services, tax assessment records and public land records), developing and rendering an opinion of value, and preparing and submitting the appraisal report.

But like all settlement services, you are still limited to reasonable payments for services actually performed.