computerized loan origination

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computerized loan origination (CLO)

A computerized network of major lenders that uses artificial intelligence to evaluate loan application data entered online by agents and determine loan eligibility and terms.HUD has approved the procedure as long as there is full disclosure of the fee,multiple lenders are displayed on the screen to give borrowers freedom of choice,and the fee charged is a dollar amount rather than a percentage of the loan.

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This announcement establishes the ability to introduce AmeriNet's state-of-the-art computerized loan origination (CLO) program throughout Mexico," said John J.
That rule expressly declared computerized loan origination (CLO) systems legal (without providing any details), reversed HUD's previous position on payments to employees for referral activities and formally rescinded all existing informal opinion letters.
Such a service can take the form of a computerized loan origination entity (CLO), where the Realtor assumes responsibility for origination of the loan; a controlled business arrangement (CBA), where a mortgage broker or lender takes responsibility for origination and the Realtor is a passive partner; or an electronic referral of information about the customer to the lenders on the MARS network.
RESPA changes proposed by HUD last month would, among other things, regulate the number of lenders that must be listed on a computerized loan origination (CLO) service and how the service is paid for.

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