What process involves a lender using another party for mortgage origination and processing?

The correct choice is the process known as third-party origination. This term refers specifically to a situation where a lender outsources the mortgage origination and processing functions to another entity, typically a mortgage broker or a correspondent lender. In this scenario, the third party acts on behalf of the lender to facilitate the loan application, gathering necessary documentation and communicating with borrowers, while the lender retains the ultimate decision-making power and financial responsibility for the loan.

Third-party origination can streamline the lending process for borrowers by providing them with additional resources and expertise. It allows lenders to expand their reach without needing to manage all aspects of the operation themselves, enabling them to focus on underwriting and funding loans.

Other processes, such as a joint venture, involve collaboration between two businesses to form a project or service; property management pertains to overseeing real estate properties rather than loan processing; and loan syndication typically refers to multiple lenders coming together to provide a single borrower with financing, not the outsourcing of the origination process. Thus, third-party origination is distinct in its focus on outsourcing mortgage-related tasks.