No, this fee can be excluded from the finance charge calculation, provided that it is itemized and disclosed and the title company pays the entire fee to the public official.

Regulation Z's finance charge calculation excludes fees “that actually are or will be paid to public officials” for recording a mortgage, among other similar fees. The fact that you are paying the fee to the public official indirectly, through the title company, does not prevent you from excluding the fee from your finance charge calculation. However, additional recording fees charged by the title company above and beyond the recording fee charged by the county recorder should be included in the finance charge.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.4(e)(1) (“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.”)

• Regulation Z, 12 CFR 1026, Paragraph 4(e), Comment 1(i) (Examples of excludable charges are “fees required for filing or recording security agreements, mortgages, continuation statements, termination statements, and similar documents . . . .”)