Lender Fees

Most lenders charge fees. There are lender fees and there are third party fees.

Examples of third party fees are credit report fees, appraisal fees and loan documentation preparation fees. The lender is not allowed to mark up and make money on these fees.

Examples of lender fees are:

• Underwriting fees
• Processing fees
• Admin fees
• Origination fees
• Discount fees (see the last posting regarding trading losses precipitated by an unusually low mortgage rate)

These fees are paid direct to the lender and represent part of their profitability model. You will find them in the 800 section of your Good Faith Estimate or HUD1 Settlement statement. Identification of these fees is perhaps the easiest part of this process.