Explain lending.Origination and servicing

Question

Accepted Answer

Lending origination and servicing involves the process of granting loans and managing them throughout their lifecycle.

Lending origination refers to the process of evaluating loan applications, determining eligibility, and approving or rejecting loans.
Lending servicing involves managing the loan after it has been originated, including collecting payments, handling customer inquiries, and managing any changes or modifications to the loan terms.
Origination and servicing activities may include tasks such as credit analysis, underwriting, documentation, disbursement, repayment tracking, and customer support.
Lending origination and servicing are crucial functions in financial institutions such as banks, credit unions, and mortgage companies.
For example, in mortgage lending, origination involves assessing the borrower's creditworthiness, verifying income and assets, and determining the loan amount and interest rate. Servicing includes collecting monthly mortgage payments, managing escrow accounts, and handling loan modifications or refinancing requests.

Accepted Answer

Explained Loan application submission, account no generation and emi schedule etc

Top FIS Senior Business System Analyst interview questions & answers