Questions and Answers

A fee for recording the lender's mortgage is usually not a finance charge because the lender usually sets the fee out separately in the Truth-in-Lending disclosures. That satisfies the requirement of Section 4(e) of Regulation Z, which says:

If itemized and disclosed, the following charges may be excluded from the finance charge:
(1) Taxes and fees prescribed by law that actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, or satisfying a security interest.

[12 CFR 226.4(e)]