Finance
A Minnesota mortgage lender charges origination points, not to be confused with discount points. Origination points are:
APrepaid interest that reduces the interest rate
BLender fees charged for processing and originating the loan✓ Correct
CRefundable deposits held in escrow
DPenalties for paying off the loan early
Explanation
Origination points (or origination fees) are lender compensation for making the loan - they cover processing, underwriting, and administrative costs. Unlike discount points (which are prepaid interest that reduces the rate), origination points don't affect the interest rate.
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