Underwriting Fees


DEFINITION of 'Underwriting Fees '

Underwriting fees are monies collected by underwriters for performing underwriting services. Underwriters work in a variety of markets including investments, mortgages and insurance. In each situation, the underwriter's jobs vary slightly yet each collects underwriting fees in exchange for his or her underwriting services.

BREAKING DOWN 'Underwriting Fees '

In the capital markets, underwriting fees are collected by underwriters who administer the issuing and distributing of certain financial instruments. A mortgage underwriter earns underwriting fees by evaluating and verifying mortgage loan applications, and either approving or denying the loan. Insurance underwriters collect underwriting fees for identifying and calculating a policy holder's risk of loss, and by writing the policies to cover these risks.

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  1. When is an underwriting fee too high on a commercial loan?

    An underwriting fee on any commercial loan is charged by the lender that underwrites or approves your loan. An underwriter ... Read Full Answer >>
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  3. What is the difference between a peril and a hazard?

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  4. How does investment banking differ from commercial banking?

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  5. What level of reserve ratios is typical for an insurance company to protect against ...

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