Finance
An 'origination fee' charged by a lender at closing is best described as:
AInterest paid in advance
BA fee for processing, underwriting, and funding the loan✓ Correct
CA prepayment penalty
DAn escrow deposit
Explanation
An origination fee compensates the lender for the cost of processing, underwriting, and funding the mortgage loan. It may be expressed as a flat dollar amount or as a percentage of the loan amount.
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