If they are not a service that the bank requires, they go in section H. See 1026.38(g)
Last edited by John Burnett; 06/15/21 09:48 PM.
The only time you would see a seller's cost in any other part of page 2 is when it is for a service the bank requires -- let's pick the appraisal as an obvious one -- that the seller has agreed to pay for specifically, rather than a general seller credit (which will appear on page 3). Another example is a radon test if the lender requires it because radon has been determined to be a problem in homes in its lending area. If the seller has agreed to pay for the test, it will be shown in section B or C depending on whether its a shopped service. See 1026.38(f)(2) - (3) where you will see the phrase "settlement services required by the creditor." Those paragraphs describe what is to appear in B and C, respectively.
Even if the buyer agreed to pay the seller's attorney's fee (not seen very often), that cost would appear in section H, in the borrower's column because it's not a service the bank requires.
Perhaps those attorneys you mentioned should try reading the regulation before offering opinions on what goes where.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8