In third-party origination, which functions may the lender delegate?

In third-party origination, a lender has the flexibility to delegate multiple key functions involved in the mortgage lending process. This includes originating, processing, underwriting, and closing mortgages.

When a lender allows a third party to handle these functions, it enables a more efficient workflow and can help the lender to expand their market reach without having to directly manage every aspect of the mortgage process themselves. This delegation can be particularly beneficial for smaller lenders who may not have the capacity to handle all functions in-house.

The origination process involves taking the initial loan application and providing a good faith estimate to the borrower. Processing involves gathering and verifying the borrower's financial information to ensure they meet the necessary criteria. Underwriting is the critical evaluation of the borrower's creditworthiness and the risks associated with the loan. Finally, closing involves finalizing the loan transaction and ensuring that all legal documents are properly executed, and funds are disbursed.

By allowing a third party to perform these functions, lenders can leverage the expertise and resources of those specialized in each area, while also managing operational costs and improving customer service level. This comprehensive delegation is what makes option A the right answer.