On a coach only mobile home loan (no land, no TRID), we charge points. We also absorb (pay) for certain fees - like a filing fee. For the TIL Disclosure, 1026.5(e) says that in order to exclude filing fees from the finance charge, we need to itemize and disclose the fee. My thought is that we are not charging the fee to the borrower (directly), so we do not need to disclose it on the TIL. But the rule says if not disclosed, it cannot be excluded from the finance charge and the APR calculation? Would we be correct to not disclose it at all?

Citation should be 1026.4(e) - comment 4(e)-1.

(a) Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.

If the consumer is not legally obligated to pay the charge then it would not be a finance charge

Thank you!

If the consumer's contractually excused from paying something, then (from the TIL perspective) it isn't a "fee" for the purposes of Section 1026.4. (It helps if you look at the question from the consumer's point of view.)