They can also be referred to as a loan officer. In some cases, this person is a mortgage broker. A mortgage loan originator (MLO) is a person or institution that helps a prospective borrower obtain the right mortgage for a real estate transaction. The MLO is the original lender of the mortgage and works with the borrower from the application and approval to the closing process.
An MLO can be a loan company, a mortgage broker, or a loan officer. People who act as mortgage loan originators are also called loan officers. You can think of them the same way you think of a project manager. The loan officer confirms your application information, collects documents to support your application, helps you negotiate the best mortgage program terms based on your finances, and tracks deadlines and helps you close your loan.
When you apply for a home loan, you can work with a loan officer or you can choose to work with a mortgage broker. Since a new home is the result of the work of both the mortgage broker and the loan officer, people sometimes confuse the two. However, recognizing the differences between them is advantageous for your home loan process. It is important to note that a mortgage loan originator will not make the final decision on your loan application or how much they will lend you.
While the loan officer is the person who works with you, the lender is the institution that initially finances the loan. You may hear the terms “mortgage loan officer” or “loan officer (LO)” used interchangeably with the mortgage loan originator, but there is a slight distinction between the two. Mortgages come in several different types of loans, have several requirements, require certain documents, and vary in terms by different lenders and state laws. A mortgage origination fee is a fee from a mortgage lender that covers the cost of services, such as originating, processing, and underwriting loans.
National banks must have federal records and do not require individual MLOs to obtain a loan originator license. They may be able to offer loans that fit many different situations, but all loans will be products of the same lender. An MLO should help ease the mortgage process by guiding you through the steps of buying or refinancing your home and financing your loan. Increases the mortgage loan portfolio by developing commercial contracts, attracting mortgage customers, completing processing and closing mortgage loans From first contact with the originator to prior approval, applying for a loan, and closing, the loan originator will will help move the process as smoothly as possible.
Refinance your current mortgage to lower your monthly payments, pay off your loan sooner, or access cash for a large purchase. Politely request a quote and inform the loan originator that they can close again once they have reviewed all of their options.