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In consumer lending, mortgage origination, a specialized subset of loan origination, is the process by which a lender works with a borrower to complete a mortgage transaction, resulting in a mortgage loan. A mortgage loan is a loan in which property or real estate is used as collateral. During this process, borrowers must submit various types of financial information and documentation to a mortgage lender, including tax returns, payment history, credit card information and bank balances. Mortgage lenders use this information to determine the type of loan and the interest rate for which the borrower is eligible. The process in the United States has become complex due to the proliferation of loan products and consumer protection regulations. [1]
The mortgage origination, a subset of loan origination, is a complex and evolved process that involves many steps, in purple, which varies from lender to lender. The basic steps include
The mortgage origination process in the United States is required to comply with the following regulations:
Mortgage origination tools fall into three categories:
The Equal Credit Opportunity Act prohibits creditors from denying a person credit because of age, race, sex, or marital status.
we're going to enact and enforce reforms to make sure that these outrages never happen in the first place.