Processing Fee
A processing fee has no standard definition and usually duplicates work already covered by the origination fee. It is almost always negotiable or removable.
- Typical range
- $0 (should not be charged)
- Category
- Junk
- Negotiable
- Usually negotiable
Common problems with the Processing Fee
- Duplicates the origination/underwriting fee
- No itemized justification
How to check this fee on your Closing Disclosure
Find this line item on page 2 of your Closing Disclosure. Compare the amount to the typical range, and check whether it duplicates another fee. If it is above range or a junk fee, raise it with your lender before you close — you have a 3-business-day review window.
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For informational purposes only. Not legal, tax, or medical advice.