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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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He was a product manager at Planning Research Corporation (PRC), McLean, Virginia, where he developed a computerized loan origination business subsidiary.
Currently, the firm is working toward implementing computerized loan origination.
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.
 
 
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