funding fee

funding fee

(1) A fee charged to the borrower by the Veterans Administration for guaranteeing a loan. (2) A fee charged by lenders as additional profit,and which may be negotiated downward.

Mentioned in ?
References in periodicals archive ?
Contractors on GSA Schedules will be permitted to withhold a portion of the industrial funding fee to cover costs associated with a reduction in the fee.
QUESTION: Would GSA be willing to negotiate less than the one percent industrial funding fee for MAS/BPAs?
ANSWER: GSA recovers a one percent industrial funding fee for all orders placed under multiple award schedule contracts, including blanket purchase agreements.
The notice stated that the lenders would no longer consider themselves obligated to make further loans or extend letters of credit, that outstanding loans would bear interest at the default rate under the loan agreement until defaults were cured or waived and that additional extensions of credit would be subject to a 5% funding fee.
GSA should retain sole responsibility for enforcing general "policing" provisions such as the clauses relating to Price Reductions, Examination of Records by GSA, and Industrial Funding Fee.
GAO said revenue from the fees, known as industrial funding fees, exceeds the cost of operating the schedules by 53%.

Full browser ?