Finance
An origination fee on a mortgage loan is charged by the lender for:
APaying the title company
BProcessing and originating the loan✓ Correct
CCovering the cost of the appraisal
DPurchasing the credit report
Explanation
A loan origination fee (or origination charge) covers the lender's cost of processing and underwriting the loan. It is typically expressed as a percentage of the loan amount (e.g., 1 point = 1% of loan).
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