by 
The Curious Bag
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The mortgage broker origination fee for a mortgage loan is 1 percent of the amount of the loan. That covers the loan company's cost of processing your loan and their business-related expenses.
Reason for Origination Fees
Lenders that charge origination fees often incur costs that come with running a business. Origination fees help pay those costs.
Costs
The origination fee for mortgages helps cover rent for office space, employees' salaries, utilities, office supplies and any other costs that are apart of running a business.
Points
The mortgage loan origination fee helps buy down points.
Purpose of Points
In real estate, points can simply mean the already discussed origination fee, but it can also mean discount points. You can lower your interest rate by paying points.
Do I Have to Pay the Origination Fee?
When it comes to origination fees, it depends on the mortgage loan broker. Some brokers charge no fees. But when discussing discount points, if you do not pay them, you'll pay a higher interest rate. It depends on the broker, and that's why it pays to shop around.
Source:
Smart Money: Points or No Points
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