Good morning!...A Consumer does not want to finance their closing costs.
Does this mean that they just want to pay the closing costs before closing? So we set it up on the CD as Paid Before Closing?
The PFC must still be included in the APR and FC, correct?

Thank you!

Not sure how we can answer what your customer wants to do, but when they pay a fee has no impact on whether it is a finance charge or not. If they pay it before closing, then yes, it is a prepaid finance charge.

I think you answered my question...I'm not exactly sure what the Consumer wants to do either... :-/ I suggested they can lower their loan amount from what the closing cost are, but even if they do that, the PFC are still in the FC and APR...

Typically, you either finance or you do not finance the closing costs based on customer wishes. If they want to pay them in cash, they typically pay them at closing, unless you have a requirement for some fees upfront, such as the appraisal and/or credit report.

I personally detest the practice of automatically including the costs in the loan amount without consulting with the borrower.

Customers are also easily confused about the cash to close table when using the standard format - they request that the closing costs be financed, but depending on the loan amount and the purchase price of the property for example - it is not going to always show them as financed. The TRID math just does not work like that.