Which of the following finance charges is not included on the Truth in Lending statement?

The inclusion of finance charges on the Truth in Lending (TIL) statement is governed by specific guidelines established to help consumers understand the true cost of borrowing. The correct option highlights that recording fees and title insurance premiums are not considered part of the finance charges that must be disclosed on this statement.

Finance charges are typically defined as the cost of credit expressed as a dollar amount and can include items such as interest, loan fees charged by the lender, discount points, and related service fees. These charges directly affect the overall cost of the loan and must be included on the TIL to provide transparency to the borrower.

In contrast, recording fees and title insurance premiums are related to the closing process and legal aspects of the property transfer rather than the cost of the loan itself. They are necessary expenses in a real estate transaction but do not carry the same implications for the credit's cost, and therefore they are excluded from the TIL statement. Understanding this distinction is crucial for both buyers and real estate professionals as it allows for more informed financial decisions and comparisons of loan offers.