There are currently requirements for payoff statements under 1026.36(c)(3) that apply to closed-end consumer transactions secured by the consumer’s principal dwelling. Effective 1-10-13 these provisions are revised under 1026.36(c)(1)(iii). Additionally effective 1-10-13, there are requirements under the High Cost Mortgage rules in 1026.34(a)(9)(i)-(v). This section details what fees are prohibited and permitted and when the payoff must be provided.
And you are correct, that in order to charge this fee is should be detailed in your note. Other Terms and Conditions seems like a reasonable place or if there is a section for “fees”; however, this is your contract and your forms vendor or attorney can be of more assistance with this. Check your state law to ensure a payoff fee isn’t prohibited.
1026.34(a)(9): https://www.ecfr.gov/cgi-bin/text-idx?SID=2a369a4c5efae1204c8c741463eceada&node=20130131y1.11
1026.36: https://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=2a369a4c5efae1204c8c741463eceada&rgn=div8&view=text&node=12:8.0.2.9.18.5.1.7&idno=12
