Answer by Richard Insley: 12 CFR part 226.4 plus the Official Staff Commentary on that section.
Answer by Lucy Griffin: Richard is correct in guiding you to Truth in Lending. The disclosure of costs on a GFE does not affect the status of a fee as a finance charge. Putting a fee on the GFE doesn't make it a finance charge nor does omitting it from the GFE (which would probably violate RESPA) take a fee off the finance charge list.
Truth in Lending alone determines whether a fee is a finance charge. You usually see people using the GFE or the HUD-1 as a resource because all settlement costs should be disclosed on them. But be careful not to confuse the two regulations.
Another caveat: some lenders put charges such as points, application fees, origination fees and the like on different lines, using different names for the charge. If you use a tool prepared by another lender, go through it very carefully to make sure it reflects what your company does.
First published on BankersOnline.com 3/1/04