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.
In order to avoid having to make such refunds, I am providing a summary of both VAâs and FHAâs current policies on this topic. Veterans Administration (VA) Loans. The VA allows a lender to charge a Veteran borrower certain third-party costs and fees associated with a loan. The VA also allows a 1% Origination Fee to be charged on every VA loan. If 1% is charged, the Veteran purchaser may NOT be charged for any âunallowableâ closing costs.