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
- Why Bankruptcy Isn't a "Get Out of Debt Free" Card
- Should You Invest in the Best Online Bank in the U.S.?
- My Profile of the Perfect Bank for the Next 20 Years
- Ready to Refinance? 8 Steps for Success
- Senior Loan Funds 101
- Wells Fargo & Co.'s Fourth-Quarter Earnings Prove Once Again That Boring Banking is Better Banking