During pregnancy, the umbilical cord carries nutrients and oxygen from the mother to the fetus. After birth, the umbilical cord is cut and left in place. This portion of the cord usually falls off on its own within 1 to 3 weeks after birth. However, in some cases, the healing process of the umbilical cord after falling off is disrupted and excess scar tissue forms, forming an umbilical granuloma in the newborn.