Which of the following best defines a loan origination?

Loan origination refers to the initial stage of the loan process, where a borrower applies for a loan and the lender assesses that application. This includes evaluating the borrower’s creditworthiness, determining loan terms, and ultimately funding the loan. The essence of loan origination is about starting the loan journey; it encompasses everything from receiving the loan application, underwriting the loan, to disbursing the funds to the borrower.

This differentiates loan origination from other processes like selling loans on the secondary market, which occurs after the loan has already been created and funded, or the legal transfer of property rights, which relates more to the ownership aspect of real estate transactions rather than the loan process itself. Additionally, the administration of existing loans involves managing loans that have already been originated and funded, which is distinct from the origination phase. Therefore, the initial creation and funding of a loan captures the essence of loan origination effectively, making it the best definition among the options presented.