Originations
Originations refers to the process of creating or establishing something new. In a financial context, it specifically denotes the act of originating loans, such as mortgages, auto loans, or personal loans. When a financial institution originates a loan, it means they are the entity that directly provides the funds to the borrower. This involves assessing the borrower's creditworthiness, determining loan terms and interest rates, and finalizing the lending agreement.
Beyond finance, the term "origination" can apply to the inception of any idea, project, or organization. It