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 ?
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.
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.
The loan was placed with a major Brooklyn-based bank and the origination fee was waived.
The lender charged a one-half percent origination fee.
If the cost of funds is 2%, that is a net of $300,000 per year in revenue before operating costs and the assumption that the origination fees were 1%, so that is $100,000 in one-time fees.
While contract interest rates have steadily declined through the recession, origination fees on new mortgages have risen.
They include loan origination fees, recording fees, county taxes, attorneys' fees, and appraisal fees.
Taxpayers usually pay points--also referred to as loan origination fees, loan processing fees, maximum loan charges or premium charges--when closing a mortgage to secure a lower interest rate over the life of the loan.