I can't believe after all this time, I am asking this question.

We charge a doc prep fee in the origination charges section. During a recent audit, it was pointed out this fee should be in the "services you cannot shop for" section, since this is fee charged by, and paid to, the doc provider (third party). I have two questions:

1. Since this fee includes the preparation of the LE & CD, in addition to other documents, are we allowed to charge this fee?
2. If the fee is allowable, what section should it be listed?

If the document prep provider is charging you for specifically preparing the LE or CD, that portion of the charge cannot be passed on to the consumer. If you are paying a third party provider to do your doc prep. then it has to be a Section B charge.