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What are mortgage origination services? What is an origination fee?

An origination fee is what the lender charges the borrower for making the mortgage loan. Origination services include taking and processing your loan application, underwriting and funding the loan, and other administrative services. Origination fees are listed in section A of page 2 of 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 won’t receive a Loan Estimate or Closing Disclosure if you applied for a mortgage prior to October 3, 2015, or if you're applying for a reverse mortgage. For those loans, you will receive two forms – a Good Faith Estimate (GFE) and an initial Truth-in-Lending disclosure  – instead of a Loan Estimate. Instead of a Closing Disclosure, you will receive a final Truth in Lending disclosure  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. If you are applying for a HELOC, a manufactured housing loan that is not secured by real estate, or a loan through certain types of homebuyer assistance programs, you will not receive a GFE or a Loan Estimate, but you should receive a Truth-in-Lending disclosure.

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