junk fees

Definitions (2)

1. Fees assessed by a lender on a borrower during closing proceedings for the loan. These fees encompass a variety of charges for administration and processing of the loan. Most of these charges are bogus in nature and used by the lender in order to increase the profit they receive from providing the loan. For example, "Amy borrowed $300,000 from her local bank to purchase a home. She was surprised by a number of junk fees that were assessed to the base loan amount during her closing."
2. A list of fees charged by an institution in order to increase its profit on the transaction. Things such as processing, administration, or verification fees are examples of some common junk fees. The amounts may be minimal, but over time they can cost a consumer a lot of unnecessary money.
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junk bond jurat