Would a Lexis Nexis fee be disclosed on a Closing Disclosure in the Paid by Others column when the Bank absorbs the fee? It would not be on the Loan Estimate since it is not a fee that we typically charge or that the borrower will be responsible for. (In rare instances, we need to run the Lexis Nexis to validate identity. We pay a monthly fee for this service.)

Technically, yes. If you pay a monthly fee for the service, the practicality of doing so would almost be impossible.

4. Is a creditor required to disclose a closing cost and related lender credit on the Closing Disclosure if the creditor will absorb the cost?

Yes, if the closing cost is a cost incurred in connection with the transaction. A creditor must disclose on the Closing Disclosure a closing cost it incurs even if the consumer will not be charged for the closing cost (i.e., the creditor will “absorb” the cost). If a creditor absorbs a cost incurred in connection with the transaction, the creditor must disclose such cost on the Closing Disclosure in the “Paid by Others” column in the Loan Costs or Other Costs table, as applicable.