verb (used without object), prorated, prorating. 1. to make an arrangement on a basis of proportional distribution. verb (used with object), prorated, prorating. 2. to divide, distribute, or calculate proportionately. Origin of prorate.
Origination charge: The VA allows lenders to charge up to 1 percent of the loan amount to cover origination, processing and underwriting costs. They can choose to either charge you a flat 1 percent origination fee, or pick and choose among a host of fees, so long as they add up to no more than 1 percent.
They charge a fee for this service, and it is known as the loan origination fee. It might be charged by the lender or the broker, depending on the situation. But it should not be charged by both. According to the Federal Reserve, it is âcharged by the lender for evaluating and preparing your mortgage loan.â.