Final answer:
The origination of a residential mortgage loan involves loan application processing, credit analysis, loan approval, and property valuation. This step involves assessing the value of the property that will be used as collateral for the loan.
Step-by-step explanation:
The origination of a residential mortgage loan, for the purposes of the definition of loan processor or underwriter, involves the following steps:
- Loan Application Processing: This involves the initial processing of the loan application form, which includes verifying the borrower's income sources and conducting a credit check on their past borrowing.
- Credit Analysis: This step involves evaluating the borrower's creditworthiness based on their credit history, credit score, and other financial information.
- Loan Approval: After the credit analysis, the loan can be approved if the borrower meets the lender's criteria for income, credit score, and other factors.
- Property Valuation: This step involves assessing the value of the property that will be used as collateral for the loan.