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What is loan origination?
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18th Nov 2009 by JonB
Loan origination typically refers to the locating of a customer who needs a loan and convincing them to use your services; which is often one of the hardest parts of the finance industry. According to RESPA, you are entitled to a document called a Good Faith Estimate very early in the loan application process. This explains the various fees you will be charged when closing the loan. One of the very first items on this paper will be the Loan Origination fee, usually expressed as percentage of the loan amount. Very generally speaking, the origination fee is around 1% of the total loan amount. This is of course up for debate between you and your financial consultant.
Loan origination typically refers to the locating of a customer who needs a loan and convincing them to use your services; which is often one of the hardest parts of the finance industry. According to RESPA, you are entitled to a document called a Good Faith Estimate very early in the loan application process. This explains the various fees you will be charged when closing the loan. One of the very first items on this paper will be the Loan Origination fee, usually expressed as percentage of the loan amount. Very generally speaking, the origination fee is around 1% of the total loan amount. This is of course up for debate between you and your financial consultant.
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17th Nov 2009 In Finance
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Subjects: loan origination,