Definitions for origination fee

This page provides all possible meanings and translations of the word origination fee

Princeton's WordNet

  1. origination fee(noun)

    a fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan


  1. Origination fee

    An origination fee, or activation fee, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan. An activation fee is typically a set amount for any account. However, an origination fee usually varies from 0.5% to 2% of a given loan amount, depending on whether the loan was originated in the prime or the subprime market. For example, an origination fee of 2% on a $200,000 loan is $4,000. Discount points are used to buy down the interest rates, temporarily or permanently. Origination fees and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement. Regulation Z was enacted to protect buyers from abusive lending practicing with regards to origination fees and origination fees for mortgages can not be deducted.


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