Loan origination fee
This fees pays for the collection of a book of documents detailing the financial history of the borrower. This information makes it possible for the loan originator to sell the mortgage to others. Resale transfer the mortgage to others with capital to lend and passes it into the hands of a mortgage service company who processes payments and maintains records of the mortgage.
Related Fool Articles
Recent Mentions on Fool.com
- The Complete List: Bank of America's Legal Fines and Settlements Since 2008
- Why These 4 Personal Finance Myths Perpetuate Money Problems
- Cautious Approach Means Millennial Credit Scores Suffer
- 6 Lessons to Remember From the Great Recession
- High Yield Stocks for Dividend Investing: Prospect Capital Corporation
- Are Too Many Seniors Losing Control of Their Credit Cards?