Loan origination

Short description: Beginning of a loan process

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]

## See also

* Loan servicing

## References

1. ↑ Kopp, Carol M. (29 December 2024). "Origination: Definition in Finance, Loan Process, and Requirements". https://www.investopedia.com/terms/o/origination.asp.
2. ↑ Young, Gayle (1984-04-07). "Computer Firm To Help Buyers Shop for Loans" (in en-US). The Washington Post. ISSN 0190-8286. https://www.washingtonpost.com/archive/realestate/1984/04/07/computer-firm-to-help-buyers-shop-for-loans/f9ff0c33-8b6f-48a6-bf04-6c5ebe29e686/.
3. ↑ 3.0 3.1 Hess, Christopher M.; Kemerer, Chris F. (1994-09-01). "Computerized Loan Origination Systems: An Industry Case Study of the Electronic Markets Hypothesis" (in en). MIS Quarterly 18 (3): 251–275. doi:10.2307/249618. ISSN 0276-7783. https://misq.umn.edu/misq/article/18/3/251/242/Computerized-Loan-Origination-Systems-An-Industry.
4. ↑ 4.0 4.1 Inderst, Roman (2009). ﻿Loan origination under soft- and hard-information lending﻿ (Report). IMFS Working Paper Series. https://www.econstor.eu/handle/10419/97723.
5. ↑ Bedayo, Mikel; Jimenez, Gabriel; Peydró, José-Luis; Sánchez, Raquel Vegas (2020). "Screening and Loan Origination Time: Lending Standards, Loan Defaults and Bank Failures" (in en). SSRN Electronic Journal. doi:10.2139/ssrn.3742006. ISSN 1556-5068. https://www.ssrn.com/abstract=3742006.

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Loan origination. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Loan_origination&oldid=4374603"