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
- 6 Common Application and Screening Mistakes Property Managers Make
- 5 Banking Fees That Are Actually Worth Paying
- How Long Does It Take to Get a Loan?
- 8 Common Refinance Mistakes
- Better Dividend Stock: PennyMac Mortgage Investment Trust or Starwood Property Trust Inc.?
- Bank of America Corp Earnings: Even Better Than They Appear?