Loan origination

Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application.[1] Origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the application). For mortgages, there is a specific mortgage origination process.{{Citation needed|date=May 2026} thing after disbursing the funds until the loan is fully paid off.[citation needed] Loan origination is a speciali g for financial services organizations. Certain people and organizations specialize in loan origination, such as mortgage brokers and other mortgage originator companies.[citation needed] 

Computerized loan origination (CLO) services include Shelternet (by First Boston), LoanExpress (by the Planning Research Corporation^[2]), Rennie Mae (by the American Financial Network), and Mortgage Power Plus (by Citicorp).^[3] Although computerization did initially face some opposition, in accordance with the electronic markets hypothesis (EMH), it had not led to a fundamental shift in the home mortgage industry by the 1990s.^{[3][needs update]}

Roman Inderst suggested in 2009 that loan origination takes time and effort from loan officers.^[4] As a result, higher competition leads to a shift from soft-information to hard-information lending, as well as to the use of credit scores.^[4] Similarly, Bedayo et al. (2020) found that, in Spain, loan origination time gets shorter when VIX (a measure of market volatility) is higher.^[5]

• Loan servicing

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