Origination fee
Definition
An origination fee is a charge the lender imposes for making the mortgage loan, including work such as processing and underwriting. It is one closing-cost item, not the finance charge and not the whole of closing costs.
In plain English
Lenders often charge for putting the loan together. That charge is an origination fee. Closing costs include many other items. The finance charge is a life-of-loan cost idea. This page is the lender’s making-the-loan charge.
Technical definition
CFPB’s key-terms heading defines an origination fee as what the lender charges for making the mortgage loan, including processing, underwriting, and funding. That official heading is PRIMARY. The Loan Estimate page is supporting context.
Why it matters
Fee-line reviews collapse origination, processing, and underwriting charges. The official consumer heading treats origination fee as the making-the-loan charge.
Related terms
Sources reviewed
12 CFR 1026.37
ObservedSeptember 4, 2026
Mortgage key terms
ObservedSeptember 4, 2026