Definitions for "Loan Origination"
Loan origination is the process by which a lender brings a loan into existence and involves certification of the loan, guaranty, and completion of the master promissory note ( MPN).
The beginning of the loan process. Initial contact wherein the borrower and lender agree to work together to secure a loan. Usually an application is taken and an initial quote is given. The borrower is asked to supply documents supporting the information that is included in the application and upon which the quote is based.
Occurs after a student accepts the loan(s) offered on his/her tentative award letter or after a parent/guardian/stepparent submits a √íParental Loan Certification Form√ď to the college. After these documents are received and provided that the documents are accurate and complete, the college notifies (originates the loan(s)), the Federal Loan Servicer electronically that a promissory note will be produced for that student or that parent.