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Changing the name of debtors on an existing loan, assisting in a refi, purchase loan, and loan modification are all examples of loan origination activities. True or False?

User Broschb
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Final answer:

The statement is false as loan origination refers to the creation of a new loan and not to modifying or altering existing loans, except refinance, which does involve originating a new loan.

Step-by-step explanation:

The statement that changing the name of debtors on an existing loan, assisting in a refinance, purchasing a loan, and loan modification are all examples of loan origination activities is false. Loan origination specifically refers to the creation of a new loan, which includes activities such as assessing the creditworthiness of borrowers, processing initial loan applications, and underwriting the loan. On the other hand, changing the name of debtors on an existing loan and loan modification does not involve creating a new loan but rather altering the terms or parties involved in a previously originated loan. Refinancing does involve originating a new loan to replace an existing one and purchasing a loan could be part of the origination process if it means originating a new loan to purchase a property.

User Palmer Dabbelt
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