Gartner Research

What Is Loan Origination?

Published: 30 May 2000

ID: G0088798

Analyst(s): Kristen Min


Management Summary Lenders are using automation to speed and improve loan decisions in a changing market that includes product commoditization, increased competition and increasingly convenience-driven consumers. The automation movement requires investments in loan origination technologies such as credit scoring and credit decision engines. Loan origination is the process of gathering and analyzing the appropriate client data to reach the loan decision. Of the stages in the life of a loan, the most important point is the loan origination as this is where lenders acquire the business. While lenders have automated pieces of the entire loan origination process, many are still depending on manual processes and time-consuming tasks in processing loans through the origination stage. In addition to the lending-specific technology components, such as credit scoring, decisioning and underwriting tools, other technologies crucial to the full automation of the lending process include information management technologies, communications technologies and customer touch points. This Context Overview Report includes an overview of the loan origination market, outlines the various steps and processes involved in closing a loan, discusses the technology components in loan origination for consumer and mortgage loans, addresses the trends in online origination and provides an overview of the vendor marketplace.

Table Of Contents
  • Management Summary
  • Consumer Lending Overview
  • Loan Origination Process
    • Application and Data Gathering
    • Validation and Credit Evaluation
    • Ancillary Services
    • Risk Analysis and Pricing
    • Underwriting
    • Closing
  • Loan Origination Technology Components
    • Credit Scoring
    • Credit Decisioning Engines
    • Automated Underwriting Software
    • Reporting, Documenting and Information Management
    • Communications Networks
    • Customer Touch Points
  • Loan Origination Market: Questions and Answers
    • What Is the Impact of the Internet on the Loan Origination Market?
    • Who Is Originating Online?
    • What Types of Loans are Consumers Applying for Online?
    • What Are Online Referral Sites?
    • What Are Broker Sites?
    • What Are Lender Sites?
    • Will Loan Origination Be Truly Automated?
  • Vendor Market Composition
    • Loan Origination Software Providers
    • Providers of Credit-Scoring Software
    • Other Software Vendors Supporting Loan Origination
    • Sample Internet Lending Sites

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.