When disclosing Adjusted Origination Charges on the GFE, which statement is false?

The statement indicating that third-party processing fees can be grouped with other charges is false. This is important because the Good Faith Estimate (GFE) requires that certain fees be categorized in specific areas for clarity and compliance. Block #1 of the GFE is designated specifically for loan origination charges, which must include the lender's fees for processing the loan, but not third-party fees.

Third-party processing fees should be listed separately in a different section to ensure that borrowers can easily differentiate between the charges incurred by the lender and those incurred by third-party service providers. Maintaining this distinction helps promote transparency in the loan estimate process, allowing borrowers to make more informed decisions.

The other choices align correctly with the regulations surrounding GFEs. All loan origination charges indeed appear together in block #1, the yield spread premium (YSP) is correctly shown as a credit to the borrower in block #2, and it is accurate that the borrower typically cannot simultaneously pay discount points and receive a YSP for the same transaction, as these two financial strategies operate under opposing aims.