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| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
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.



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