What is the process called for taking and processing a mortgage loan application?

The process referred to in the context of taking and processing a mortgage loan application is known as origination. Origination encompasses all steps involved in the creation of a mortgage loan, starting from the completion of the loan application by the borrower to the approval of the loan by the lender. This process includes detailed tasks such as collecting necessary documentation, evaluating borrower creditworthiness, underwriting the loan, and finally, preparing the loan for closing.

Origination is a crucial step as it sets the foundation for the entire lending cycle. It involves coordination between the borrower, loan officers, underwriters, and other stakeholders to ensure that all specifics of the loan application are accurately captured and processed. This phase reflects a comprehensive assessment to ensure the borrower meets the criteria set forth by the lender for review and approval.

While application processing focuses specifically on the steps taken to handle the application itself, origination is a broader term that includes not just processing but also assessing and finalizing the loan terms. Loan qualification is more about determining if a borrower meets certain eligibility criteria for a loan, and funding refers to the disbursement of the loan amount after all approvals have been completed. The distinction lies in the fact that origination encompasses the entire spectrum from application to approval.