Paul, do you work for free? I'd be willing to bet that you don't. Neither do loan officers. That origination is how the loan officer primarily gets paid; granted some of that will go to the loan institution, but no one works for nothing. Sometimes it will depend on the size of the loan (750K loan will sometimes have a lower orig than say a 200K loan), but there is always some sort of origination. Alan, you are totally correct. Without the origination, then the "backend" fees are generally higher which translate into a higher APR or a higher rate itself. Originations of 1% are pretty standard, at least they were when a few years ago when I was in the business.
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