See: Origination.
When you start the process of getting a loan or a mortgage, sometimes there's a fee you have to pay. It's meant to cover the cost of the process (the man hours that go into filing paperwork and hassling you to send all your documentation). Also, the origination fee tends to weed out the riff-raff and the lookie-loos who might otherwise clog up the process and waste the bankers' time.
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Finance: What is a primary offering, and...29 Views
finance a la shmoop what is a primary offering and what are primary shares all
right people let's start with the primary offering it's pretty much just
an IPO or initial public offering of stock that's primary and hello 1933 Act [The 1933 securites act is slid onto a desk]
that's what gave rise to all the regulations around primary offerings its
original shares virgin ones in fact now being offered for the first time to an [Someone holding 'extra virgin stock']
investor public primary offering that's what it is
but primary shares also come from private companies like a venture capital [Sign for a venture capital company]
company might buy primary shares in a b round from whatever.com as that company
funds its growth now once a company is already public its shares will have
traded back and forth in many different hands over time those would be called [Secondary shares stamp]
secondary shares and hello 1934 Act which set the regs all around
secondaries so yeah primary 1933 secondary 1934 and well that's pretty
much it as long as you can count to two this one's a pretty easy concept to
would wrap your head around.. primarily.. [Woman looks confused]
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What is an IPO? IPO stands for initial public offering. These are used when a company decides to go public; meaning people can buy shares of the co...