What is the fee charged by a mortgage broker for processing a mortgage loan application called?

The fee charged by a mortgage broker for processing a mortgage loan application is correctly identified as an Application Fee. This fee is typically charged at the beginning of the mortgage process and is intended to cover the costs associated with reviewing and processing the loan application. These costs can include credit checks, underwriting, and other administrative tasks that are necessary to evaluate a borrower's eligibility for the mortgage.

Understanding this term is crucial because it distinguishes between various fees associated with mortgage transactions. For example, the Broker Fee is often a different charge that may be related to the services the broker provides throughout the mortgage process, such as negotiating the loan terms or providing access to different lenders. The Origination Fee is generally assessed by the lender for processing the loan and may encompass more than just the initial application review. Lastly, a Processing Fee is more related to the actual management of the loan after the application has been submitted, often linked to specific tasks in the lender's operations.

In summary, the Application Fee specifically pertains to the upfront costs incurred when a mortgage broker processes a mortgage application, making it the appropriate choice in this context.