On a closed-end, home-secured 5 yr. home equity loan we charge a $50 doc. prep. fee. It is disclosed on the GFE and the HUD-1 at line #1105. No POC is marked next to it.
On the note we are stating the loan amount is $10,000, but amount financed is $9,950.

I'm no expert, but to me it looks like we are calling the $50 fee a Pre Paid Finance Charge (PPFC) in one place (the note), but not in the other (the GFE and the HUD-1).

Help. Is this ok or do we have it wrong?

POC means "paid outside of closing." It does not mean that it is a pre-paid finance charge. If the borrower pays it at the closing of the loan, POC does not apply.

Thank you for the clarification. Let's say it is a PPFC (because they adjusted down the amount financed by $50 and increased the finance charge amount by $50), paid by the borrower at closing, is it listed at the correct line (1105) or should it be in the 800 series.

Line 1105 is the line that some lenders and closing agents use to indicate charges to cover their costs of preparation of final legal papers, such as mortgage, deed of trust, note or deed. I would not think it would go in the 800 line series.

I'm reading a Q&A from Jack Holzknecht's seminar and it says that the portion of the doc prep fee that is paid to the attorney goes on 1105 or 1107 and the portion that the bank retains goes in the 800 series.

Here's the instructions from Appendix A of RESPA:

Lines 1100 through 1113. This series covers title charges and charges by attorneys. The title charges include a variety of services performed by title companies or others and includes fees directly related to the transfer of title (title examination, title search, document preparation) and fees for title insurance. The legal charges include fees for Lender's, Seller's or Buyer's attorney, or the attorney preparing title work. The series also includes any fees for settlement or closing agents and notaries.

There are no general instructions for the 800 series, but here are a few specific line item instructions:

Line 801 is used to record the fee charged by the Lender for processing or originating the loan. If this fee is computed as a percentage of the loan amount, enter the percentage in the blank indicated.

Lines 808 through 811 are used to list additional items payable in connection with the loan including a CLO Access fee, a mortgage broker fee, fees for real estate property taxes or other real property charges.

Technically, I can't disagree with Jack's Q&A. Attorney fees go in the 1100 series and bank fees go in the 800 series. The main issue is to get the fees on the Settlement Statement. Generally, I don't see bank's list document prep fees on 801 as they reserve this for points, but the line item instructions indicate that this is where it goes for a bank charged fee. Therefore, you could use the 808-811 lines if you want to be technically correct. I often see banks that list a bank fee for doc prep in the 1100 series, however, and I've never seen a bank cited for this.

Anon: Don't confuse RESPA & TIL requirements. The Settlement Statement has nothing to do with finance charges.

This is the verbiage from HUD's website:

"1105. Document Preparation: This is a separate fee that some lenders or title companies charge to cover their costs of preparation of final legal papers, such as a mortgage, deed of trust, note or deed."

That is not the instructions from Appendix A of RESPA. While it really doesn't matter (see my previous post), the 1100 series is for attorney fees, not lender fees.