Yes, you should disclose a mortgage lien release fee in both the HUD-1 and in your TILA disclosures.

The RESPA regulations require that you disclose all charges paid by the borrower on the HUD-1. 12 CFR 1024.8(b)(1). The HUD-1 instructions clarify that you must disclose “all charges imposed upon the Borrower and the Seller by the loan originator,” and HUD FAQs further clarify that any fee “required by the lender” must be disclosed. Instructions for Completing HUD-1 and HUD-1a Settlement StatementsHUD-1 Q&A #4, printed in FDIC FIL 45-2000 (July 12, 2000).

Regulation Z also requires the disclosure of mortgage release fees, if you plan to exclude them from your finance charge calculations. Fees paid to public officials for releasing a security interest may be excluded from the finance charge calculation, but only if they are itemized and disclosed. 12 CFR 1026.4(e)(1).