When it comes to itemizing charges on the Loan Estimate (LE), TRID states that charges “absorbed” by the creditor do not need to be disclosed on the LE. An example of this would be where the creditor will require a credit report but will not charge the customer for it. The creditor will absorb that cost. Institutions need to remember; however, this is not the case when you complete the Closing Disclosure (CD). The CD is all about transparency, not only the amount of the fees but also who paid for what. So, a charge that is absorbed by the creditor, does not have to be on the LE but it must still be itemized and disclosed on the CD.
Jerod explains more in the video.