What are mortgage origination services? What is an origination fee?
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An origination fee is what the lender charges the borrower for making the mortgage loan. Mortgage origination services may include processing the application, underwriting and funding the loan, and other administrative services.
Origination fees are disclosed in your Loan Estimate. Origination fees generally cannot increase at closing, except under certain circumstances. The final charges are listed in section A of page 2 of your Closing Disclosure.
Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:
- A reverse mortgage
- A home equity line of credit (HELOC)
- A manufactured housing or mobile home loan not secured by real estate
- A subordinate loan through certain types of homebuyer assistance programs
For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 Settlement Statement. Origination charges are listed in Block 1 on your Good Faith Estimate (GFE) and Line 801 of your HUD-1 settlement statement.