An applicant came to us for a mortgage loan and we issued our LE and disclosed a figure for the appraisal. We are now at CD, Along the way, the customer informed us that he also applied for the mortgage at another bank before deciding to go with us. The other bank ordered and obtained the appraisal and the customer paid for it as part of their application with the other bank. We have had the appraisal signed over to us by the appraiser since it was so recent.
As to the appraisal fee, should we remove it from Section B and show it in the "Other" section of the CD in the "Paid before closing" column? It is still a cost of THE loan, just not a cost of our bank's transaction. That is my thought. In addition, the actual cost of the appraisal was higher than what we disclosed on our LE. But, since we are moving it to "Other", do we need to worry about the cost exceeding our initial estimate? If we do, then we can show a general lender credit for the difference?