- The processes and all the steps involved when an individual or legal entity applies for a loan and a lender processes that loan application. Mortgage brokers specialize in loan originations, and more specifically, they specialize in mortgage originations by taking a mortgage application and going to lenders to find the best mortgage product with the best mortgage rate.
mortgage origination, origination
Related Terms and Acronyms
- Borrower — Definition,
- A person who borrows money or obtains a loan.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loan Processing — Definition,
- The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
- Mortgage Broker (MB) — Acronym, Important,
- One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
- Origination Date — Definition,
- The date on which a loan is funded.
- Origination Fee — Definition,
- The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
- Principal — Definition,
- The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
- Renewal — Definition,
- Signing on again with the same lender once a term is up.
- Third-party Originator — Definition,
- One who takes all or part of the mortgage application and transfers or sells it to a lender.
- Type 'A' Property — Definition,
- Residential property that is centrally heated and accessible year-round.
- Type 'B' Property — Definition,
- Property that may not be centrally heated or may only be seasonally accessible.