Pest Inspection Fee of $75 listed in Box 6 of GFE. Termite Inspection Fee of $650 was included in 1300 section under Paid from Sellers Funds at Settlement. Q&A #32 clearly states that amount of service should have been Paid from Borrowers funds on HUD-1 in 1300 series and there should have been an offsetting credit from the seller in lines 506-509. Correct? The pest inspection company chosen was on the lenders List of Service providers and would typically be in the 10% tolerance. Does it matter that the pest inspection fee was paid by the seller? IOW, are seller paid fees such as origination fees, appraisal, etc exclued from the Page 3 HUD Comparison chart is paid by the seller? Thank you.

No. Every fee that is on the GFE must be shown on the HUD, no matter who ultimately pays it.
Further, fees that are on the GFE should show in the BUYER's column on the HUD, not the Seller's. You give a credit on p1 for items paid by the seller.

But first you need to verify that the pest inspection was a condition of getting the loan, not just something that was written into the offer. If you don't require the pest inspection, then it doesn't belong on the GFE at all (or on p3 of the HUD) and you can put it in the Seller's column.

Curiously, why was the difference so large?