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.
Congress has also authorized the eventual elimination of the federally required origination fee
students must pay to the federal government for each Stafford loan.
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
The lender charged a one-half percent origination fee
Effective July 1, 2006, all new Stafford loans disbursed after that date will receive the new zero origination fee
The Loan, which has a 2% origination fee
, matures April 5, 2010 and has an annual interest rate of 12% payable to the extent of available cash flow received by Prime Dearborn from Dearborn LLC, with minimum payments of 8% in the first year of the Loan and increasing by 50 basis points each year thereafter.
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.