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 ?
LOS ANGELES, March 21 /PRNewswire/ -- Lone Oak Fund, LLC is readying to launch a first of its kind lending program, in which the real estate broker, rather than the lender, will be solely responsible for determining borrower loan origination fees, it was announced today by Gerald A.
School As Lender loans offer many benefits to students, including lower interest rates and fees compared to direct or private loans and schools generally pay loan origination fees for students.
280,000 was expensed related to the amortization of loan origination fees and was allocated to Other Income/Expense.
GoLoan, the online mortgage services company designed to allow residential real estate brokers and their sales representatives to reap loan origination fees in addition to their normal sales commissions, reported an 82% increase in the number of brokers signing up for its services over the same two-month period in 2001.
0 MM annualized, and strong mortgage loan origination fees of $66,000 helped offset $79,000 in real estate owned expenses for the quarter.
Borrowers who qualify for the FHA program are responsible for paying loan origination fees, as well as an insurance premium to FHA equal to 1.
This section modifies Revenue Rulings 57-541 and 67-297 so that loan origination fees on FHA and VA loans paid during taxable years beginning after December 31, 1990, are deductible in the year in which paid, in cases where the other requirements of Rev.
Loan origination fees, which could amount to an additional point or more.
221-1(f)(2)(ii) and (f)(4), Example (2), discuss loan origination fees.
McKeon said the savings will be used to eliminate loan origination fees, increase federal Pell Grants, and allow students to borrow more money in their first two years of college.
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.
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.