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.
March 22, 2012 at 10:00 pm #2508. Our bank charges a 1% origination fee to the borrower on our mortgage loans. We are considering collecting an undewriting fee and a processing fee in addition to the 1% origination fee. Other lenders have told us that, per regulations, we can not charge an origination fee AND charge the underwriting and processing fees. We were told that you have to do one or the other. However, we were told that you may charge a discount point and also charge the underwriting and processing fee. But in order to do that, the borrower would have to receive a lower rate than what he/she would receive had they not elected to pay a discount point.