We are doing a RESPA covered loan and all costs are being paid by the seller.....appraisal, title policy, etc. It is my understanding all these costs must be listed on the GFE, but where do you show a credit back to the customer? If not, the GFE looks to be way overstated. Our volume of these type loans is so low since the rules changed in 2009 that we really struggle with the GFE. Any assistance is appreciated.

The charges will be shown on the GFE just as they would if the borrower was paying them and there will be a seller credit shown in the 200 series of the HUD.

Search the 4/2/10 FAQs with the search term "seller paid" and you will find appropriate guidance.

Here are the FAQ's Dan is talking about.

As Dan stated, the GFE should be prepared as if the borrower is paying them. Also, (correct me if I'm wrong Dan) since the fees are disclosed in the GFE, these fees need to remain in the borrowers column on page 2 of the HUD-1 settlement statement to ensure comparability with the GFE. A credit(s) reflecting all the items the seller is paying will be shown on line 204 of the borrower's column on page 1 with a charge(s) to the seller on line 506 of the seller's column on page 1.

The FAQs do instruct the the charges are shown in the appropriate buyer's column with the credit shown as you describe.