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An origination fee, or activation fee, is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan. 
An activation fee is typically a set amount for any account. However, an origination fee usually varies from 0.5% (half a point) to 2% (two points) of a given loan amount, depending on whether the loan was originated in the prime or the subprime market. For example, an origination fee of 3% on a £200,000 loan is £6,000. In the United States origination fees are allowed for mortgages but are illegal for other loans.  The FTC indicates origination fees are scams.
Discount points are used to buy down the interest rates, temporarily or permanently. Origination fees and discount points are both items listed under lender-charges on the HUD-1 Settlement Statement. Regulation Z was enacted to protect buyers from abusive lending practicing with regards to origination fees and origination fees for mortgages can not be deducted.
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- "loan origination fee". investorwords. Retrieved 21 May 2013.
- "Scam alert: BBB says advanced fee loan scams are on the rise". Retrieved 31 May 2016.
- "Six Sure Signs of an Advance-Fee Loan Scam". Retrieved 31 May 2016.
- "Loan Origination Fees: What They Are And How You Can Save". personaldebtrelief. Retrieved 1 January 2014.
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