Definition, Meaning & Synonyms

underwriting-fee

noun

ˈʌndərˌraɪtɪŋ fi

Definition

A charge that a lender or financial institution imposes to cover the costs associated with evaluating and processing a loan application.

Examples

The underwriting fee for the mortgage was higher than expected.
When applying for a personal loan, be sure to ask about any underwriting fees that may apply.
The bank disclosed a small underwriting fee in the loan documentation.

Meaning

The underwriting fee compensates the lender or underwriter for assessing the risk of lending money and ensuring that the loan complies with specific guidelines and regulations.