Computerized Loan Origination (CLO) refers to the use of specialized computer software in the origination of mortgage loans, often by an individual who is not a loan officer, connecting the originator to various mortgage lenders. It enables real estate brokers to offer a broader range of services.
The Federal Home Loan Bank System was a federal credit system that provided credit reserves to savings and loan associations, cooperative banks, and other mortgage lenders, operating similarly to the Federal Reserve Bank's role with commercial banks.
