My secondary market lending area is asking the following question. Escrows are a big pain, and I'm just not sure. Can anyone help?

I have a customer that wants to pay his own escrows which means my investors will charge him a quarter percent to do so. Do I show this as a discount point or can I show it as an escrow fee?

We offer this as well and have been showing it as an "Escrow Waiver Fee" on the GFE, HUD and including it in pre-paids. Our examiners haven't had a problem with this in the couple years that we've been doing this.

It's definitely a Finance Charge.

Thanks! I appreciate the quick responses.