The stump of your baby's umbilical cord should dry up and fall off within a few weeks of birth. On occasion, the base of the cord forms a growth called a granuloma. Signs: The area around the umbilical cord may be moist and swell slightly. The area may be yellowish and could ooze or bleed a little bit. Treatment: Your pediatrician can treat the growth with silver nitrate to dry it out. If that doesn't work, it may have to be removed in a minor procedure.