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.
Tax Service fees are an example of an âunallowableâ charge. For example, if the lender is charging the Veteran purchaser an Origination Fee of .5% â then âunallowableâ fees can also be charged but the total cannot exceed the remaining .5% of the loan amount.