An origination fee or establishment fee is a payment charged for establishing a loan account with a bank, broker, or other financial service provider.
[2][4] In the United States, Discount points are used to buy down the interest rates, temporarily or permanently.
Origination fees and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement.
Regulation Z was enacted to protect borrowers from abusive lending practices.
Under this regulation, origination fees for mortgages cannot be deducted from taxes.