junk fees

junk fees

A popular term for lender fees and expenses that are disguised additional profit.They are usually relatively small, but can add up to significant income if enough borrowers pay them. Sample junk fees are loan processing, document handling, fund maintenance, review appraisal, underwriting review,and other such items.

Junk Fees

A derogatory term for lender fees that are expressed in dollars rather than as a percent of the loan amount.

See Settlement Costs/Fees Paid to Lender/Lender Fees Expressed in Dollars.