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 ?
Exhibit I illustrates a portion of the comparison schedule between Case I, the financing alternative with the higher interest rate, but the lower points or loan [TABULAR DATA FOR EXHIBIT I OMITTED] origination fee, and Case II, the financing alternative with the lower interest rate, but the higher points or loan origination fees. If we use the traditional payback method without considering the time value of money, the payback period will be $2000/$17.28 or 115.74 months.
On the plus side, the measure uses a small portion of the student loan cuts to create new grants for math, science, and foreign language majors; reduce loan origination fees; increase borrowing limits; and improve the need-analysis system.
Points may be identified as "loan origination fees," "loan discount," "discount points," or simply, "points";
Nelson says capping interest rates, ending loan origination fees and allowing borrowers to refinance existing loans would help to make education more affordable for Florida students.
The analysis automatically warns users when it identifies tax-service fees and/or loan origination fees exceeding 1 percent of the loan amount on the HUD-1 settlement statement, in accordance with HUD Mortgagee Letter ML 2006-04.
Under House Bill 2204, these lenders can charge no more than a 36 percent annual percentage rate, along with up to $10 in loan origination fees per $100 borrowed.
Unless the professional has made them aware of the charges that will be taken out (for example: loan origination fees, brokers fees, bank attorney fees, mortgage interest, mortgage tax, real estate taxes), there is always the potential for the client to be short of funds at the closing table.
For this purpose, OID can include capitalized interest and loan origination fees.
* Loan origination fees, which could amount to an additional point or more.
92-12 provides that points can be designated as "loan origination fees," "loan discount," "discount points" or "points."
* Loan origination fees are to be deferred and recognized over the contractual lives of the related loans as a yield adjustment.