Discharge fees in securitisation are known as discharge costs. They are fees that are charged by a securitisation issuer to a borrower when the borrower fully repays their loan. The discharge costs are typically used to cover the costs of servicing the loan, such as the costs of collecting payments and managing the loan portfolio.
The discharge costs are typically a percentage of the loan amount. For example, the discharge costs may be 1% of the loan amount. The discharge costs are typically paid by the borrower when they make their final payment on the loan.
The discharge costs can be a significant expense for borrowers. It is important to factor in the discharge costs when considering whether or not to take out a securitisation loan.