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
- Buying a House? Why Your Down Payment Isn't Enough
- What Is a Mortgage Broker, and Should You Use One?
- Why You Should Never Buy a Home on the First of the Month
- With Defaults On the Way, Will Big Oil Go Shopping?
- 7 Hidden Fees to Watch Out for in Retirement
- This Selfless Act Could Be Costing You More Than You Realize