1. Get an LOS that allows negative costs where appropriate, or
2. In the case of a refinance, use the Payoffs and Payments schedule option shown in Model Form H-25(E), page 3. Include the refund of the overcharge as a negative amount. Describe it as "Refund to borrower of overcharge for appraisal." If you can't use a Payoffs and Payments schedule or can't use a negative amount in the schedule, see #1.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8