Final answer:
An underwriting fee is charged by the lender to cover the costs of evaluating a borrower's creditworthiness and determining loan approval.
Step-by-step explanation:
The charge for processing records for a home buyer who assumes an existing loan is called an underwriting fee. An underwriting fee is typically charged by the lender to cover the costs associated with evaluating the borrower's creditworthiness and determining whether to approve the loan. It is an upfront fee that is paid by the borrower at the time of loan application, and it is separate from other fees such as points, interest, and application fees.