Our construction/perm loans charge a $350 Construction Inspection fee that shows payable to the bank on the HUD-1. We allow for 6 inspections at $75/ea during the construction period. If more inspections are used, the extra fees are collected "most of the time" on the HUD-1 at modification. But, if only 5 inspections are used, they are putting the extra $75 into income & not refunding. The inspections are being conducted by appraisers and the bank, depending on the circumstances. I understand the position of upcharging 3rd party fees, but does this qualify since there is no way of knowing who is going to conduct the inspections?