Origination Fee


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Origination Fee

A charge imposed by a lending institution or a bank for the service of processing a loan.

For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan.

References in periodicals archive ?
PenFed is committed to its military members, and when you stop to consider how much the origination fee waiver will save our qualified veterans, the savings really are quite outstanding.
The exemption discussed in the proposed outline would only allow consumers to pay: bona fide discount points that actually lower the loan rate; and 2) origination fees that are flat and do not vary with loan amount, if the loan originator is also paid for the transaction.
They are also called loan origination fees, maximum loan charges, or premium charges.
May 18, 2011 /PRNewswire/ -- CU Student Lending, LLC, a credit union service organization (CUSO) that developed and manages the cuStudentLoans private student loan program, today announced the launch of its 2011 EdAccess Private Student Loan that features zero origination fees to the borrower.
As part of Sallie Mae's ongoing "zero origination fee" commitment, the company will continue to pay the balance of the origination fee -- 1.
Fast Growing Private Mortgage Fund to Let Brokers Control Loan Origination Fees
Fortunately for them, they found another broker who truthfully told them that it wasn't such a complicated deal and completed the transaction for a 1% origination fee, saving them $15,000.
For this simple move -- filling out one page about the buyers and completing a number of tasks in compliance with RESPA federal guidelines -- the broker and sales representative earn the entire origination fee.
By paying the three percent origination fee on Stafford loans, students will now have more of their loan proceeds available for use towards their educational goals.
Borrowers normally pay an origination fee -- 3 percent of the loan's principal -- to the government.
The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus.
Beginning May 1, 2006, Key will eliminate the three-percent origination fee on the Federal Stafford Loan