Loan origination is the process by which a
borrower applies for a new
loan, and a
lender processes that application. Origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the application).
Loan servicing covers everything after disbursing the funds until the loan is fully paid off. Loan origination is a specialized version of new account opening for financial services organizations. Certain people and organizations specialize in loan origination.
Mortgage brokers and other mortgage originator companies serve as a prominent example.