loan origination refers to the process by which a loan is initially made to a borrower - IE, a lender accepts a borrower's application for a loan (as in the case of a mortgage) and the borrower and lender agree to the terms for repayment. As loans are increasing securitized and then sold off to other investors, a bank that originates a loan may only hold that loan for a brief period of time before selling off the loan - and therefore the right to be repaid by the borrower - to other investors.
Loan Origination for real estate is the process of qualifying a potential buyer for the funds necessary to purchase a piece of real estate. This process usually starts with mortgage lead generation. The process requires that a form known as a 1003 spoken as, "ten-0-three" is filled out and submitted to an underwriter.