origination fees

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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 fees

Charges to a borrower to cover the costs of originating a loan.

References in periodicals archive ?
switching to a business model where we only charge a flat fee for origination would force us to arrive at an average origination fee for all loans.
Since the points and loan origination fees are excellent profits for financing companies, one should always negotiate the mortgage down to no points or loan origination fees, if at all possible.
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.
In its initial press release announcing the suspension, HUD reported that its Mortgagee Review Board found that in 21 cases ETM "failed to properly disclose all loan origination fees, as well as lender fees to mortgage brokers (commonly called 'yield-spread premiums') on borrowers' Good Faith Estimates.
As an example of the origination fee savings value, a $150,000 mortgage origination will save a credit union $300 to originate through TruHome, the CUSO said.
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.
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 Lines of Credit program run by Gala Resources of New York limits origination fees to one time a year regardless of the number of loans.