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.
221-1(f)(2)(ii) and (f)(4), Example (2), discuss loan origination fees.
In response, Harari informed brokers that they would receive the entire loan origination fee for simply filling out one page of information online, submit supporting documents and completing several other tasks that are designated and tracked on GoLoan's Web site.
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.
57-541, 1957-2 CB 319, and 67-297, 1967-2 CB 87, dealing with the treatment of loan origination fees on FHA and VA loans, do not apply to cash-basis home buyers who satisfy the requirements of Rev.
the Form HUD-1) as points (for example, as loan origination fees (including amounts so designated on VA and FHA loans), loan discount, discount points or points), regardless of whether shown as paid from the borrower's or the seller's funds at settlement;