What is the process called when a lender uses another party to help with mortgage origination and processing?

The process referred to in this context is known as Third Party Origination (TPO). This involves lenders collaborating with other parties, such as mortgage brokers or correspondent lenders, to originate and process mortgage loans. TPO allows the lender to leverage the expertise and resources of these intermediaries to reach a broader range of borrowers, streamline the loan approval process, and enhance customer service. By utilizing third-party origination, the lender can focus on its core competencies, such as underwriting and funding loans, while outsourcing the initial stages of loan processing to experts in the field.

This method can also provide lenders with increased efficiency, as third-party originators often have established relationships with potential borrowers and can facilitate faster processing times. TPO is a significant aspect of the mortgage industry, enabling various stakeholders to work collaboratively toward common goals in the lending process.