Finance
What is 'loan origination fee' in Delaware mortgage lending and how is it regulated?
AA fee charged annually throughout the life of the loan
BAn upfront fee charged by the lender for processing and originating the loan — typically expressed as a percentage of the loan amount; must be disclosed on the Loan Estimate and Closing Disclosure under TRID/RESPA✓ Correct
CA fee charged by the Delaware Real Estate Commission for all mortgage approvals
DA fee that is always equal to exactly 1% of the loan amount in Delaware
Explanation
A loan origination fee compensates the lender for processing the loan. It is typically 0.5–1.0% of the loan amount (or a flat fee). TRID (RESPA/TILA Integrated Disclosure) requires lenders to disclose origination fees on the Loan Estimate (within 3 business days of application) and the Closing Disclosure (at least 3 business days before closing). TRID also limits how much these fees can change from LE to CD (tolerance limits).
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