For example, if a student were to borrow $1,000 with a 4 percent origination fee
, the student would start with a principal balance of $1,040.
The origination fees
on the $100 million in loans are now $1 million and the servicing fee of 100 basis points on the portion sold to other credit unions is $900,000.
I illustrated this in a follow-up letter I wrote to CFPB: The costs of originating a loan are not limited to the cost of loan officers, but also include underwriters and secondary market staff as well as building, equipment, technology services and other overhead costs that my company charges through origination fees
that vary based on the amounts of borrowers' loans.
The trend toward higher origination fees
on mortgages has been ongoing since the second quarter of 2007.
With traditional mortgages, the origination fee
is sometimes charged to consumers in the form of a higher interest rate, so the consumer doesn't see the full origination fee
, Burns says.
The origination fee
is limited to the greater of $2,000 or 2% of the maximum claim amount.
At the same time, Timmons said the bill has some selling points, such as the reduction in loan origination fees
. The bill calls for the gradual reduction in loan origination fees
, eventually paring them down to one percent.
Schools that joined and subsequently left the Direct Loan Program reported a number of factors that influenced their decision, including difficulties fulfilling certain program requirements and reduced or no loan origination fees
offered by FFELP lenders.
They are also referred to as loan origination fees
or premium charges.
(15.) Examiners discussed the SunTrust Affordable Housing Program, a proprietary program providing down payment assistance, flexible debt ratios, below market interest rates, and no mortgage insurance; the Community Home Buyers Program, a proprietary program offering flexible debt ratios and no discount points or origination fees
; and the Florida Housing Finance Agency Homeowner Mortgage Revenue Bond Program, a statewide program that offers a below market interest rate and down payment assistance.
In a semi-victory for cities, House conferees insisted on modifying Senate-approved language authorizing States to charge local governments "loan origination fees
" when they borrow from the water infrastructure (wastewater and drinking water) revolving loan funds.
They are also called loan origination fees
, maximum loan charges, or premium charges.