What is the general term for the fee collected by lenders to cover processing costs?

The origination fee is the general term used to describe the fee charged by lenders to cover costs associated with processing a loan application. This fee typically encompasses the compensation for the time and resources involved in evaluating, preparing, and approving the mortgage application.

While the processing fee specifically relates to the costs incurred during the processing stage of the loan, the origination fee is broader and includes various administrative tasks throughout the loan's lifecycle. Servicing fees pertain to the maintenance and management of the loan after it has been issued, while underwriting fees are specifically charged for the assessment of the borrower’s creditworthiness and financial situation. The origination fee represents the upfront cost of securing a loan and is commonly expressed as a percentage of the loan amount.