Question:

If I require a customer to have Hazard Insurance, am I required to disclose that on the HUD-1 and on the TILA? Is that considered a finance charge under TILA?

Can you let me know what sections this would be located in too? Thanks.

The hazard insurance must be on the GFE and the HUD-1 (with the appropriate "POC" designation on the HUD-1). However, this may be excluded from the finance charge.

Put it on the HUD-1/1A and GFE. They act as the itemization for the Reg. Z.

And as to exclusion of the cost as a FC, look to §226.4 Finance charge.
(2) Premiums for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property, may be excluded from the finance charge if the following conditions are met:

(i) The insurance coverage may be obtained from a person of the consumer’s choice, and this fact is disclosed.

(ii) If the coverage is obtained from or through the creditor, the premium for the initial term of insurance coverage shall be disclosed. If the term of insurance is less than the term of the transaction, the term of insurance shall also be disclosed. The premium may be disclosed on a unit-cost basis only in open-end credit transactions, closed-end credit transactions by mail or telephone under §226.17(g), and certain closed-end credit transactions involving an insurance plan that limits the total amount of indebtedness subject to coverage.

Check the Reg for footnotes extracted from this cite.

Thank you R.G Smith and Andy Z! I appreciate your input.

I looked at 226.4 in TILA before I asked the question, and it didn't appear to be clear (at least to me), and I didn't find the commentary much help either, that's why I asked.