Origination Fee

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Origination Fee

A percentage of the total amount of a loan that one pays for the privilege to take out that loan. A bank or brokerage assesses this fee in theory to help defray costs. Banks and brokerages must disclose the amount of the origination fee to the borrower within three hours of applying for the loan. See also: Activation fee.

Origination fee.

An origination fee is an amount, usually calculated as a percentage of a mortgage loan or home equity loan, which a lender charges for processing your application. The origination fee may be subtracted from the amount of the loan or you may pay the fee separately.

Origination Fee

An upfront fee charged by some lenders, expressed as a percent of the loan amount.

It is the same as points except that points vary with the interest rate and the origination fee does not.

References in periodicals archive ?
This figure represents the additional points or loan origination fees for Case II.
Fast Growing Private Mortgage Fund to Let Brokers Control Loan Origination Fees
The Company reported loan origination fees and gain on sale of loans of $4.
The Company also reported loan origination fees and gain on sale of loans of $5.
As a result of the conversion, the Company was able to charge management fees, loan origination fees and investment advisory fees to its portfolio companies and other firms with which it did business.
Expenses associated with these events include the amortization of loan origination fees, interest expense and a compensation expenditure resulting from the Company's decision to repurchase stock acquired by employees under its stock option award program as part of the tender offer.
In PNC, the Tax Court had also relied on INDOPCO to require loan origination fees to be capitalized.
Mortgage loan origination fees of $66,000 for the quarter helped offset $79,000 in Real Estate Owned expenses.
All documentation closing costs and loan origination fees are waived for loan amounts up to $500,000 under this program.
The increase is primarily attributed to an increase in loan origination fees of approximately $74,000 and an increase in other income of approximately $21,000.
b) Zero loan origination fees with $200,000 initial draw, exclusive of third party charges.
The points must be designated on the Uniform Settlement Statement as points (for example, as loan origination fees (including amounts so designated on Veteran Affairs (VA) and Federal Housing Administration (FHA) loans), loan discounts or discount points), and shown as paid from either the borrower's or seller's funds at settlement.