In some cases, this person is a mortgage broker. A mortgage broker will take your application and show you the options of several lenders so you can compare prices and service policies. The banks, credit unions, and non-bank lenders that finance your loan may also be referred to as mortgage originators, although a mortgage lender is the better term. At Freedom Mortgage, we have loan officers who are employees and can help you apply for a mortgage with us.
We also work with mortgage brokers who can help you select us for your next mortgage. A mortgage loan originator, or MLO for short, is the regulatory name for a loan officer. You can check your loan agent's license status by using the National Mortgage Licensing System (NMLS) consumer access site and entering their six-digit NMLS number. Most mortgage loan originators receive commissions, but compensation may vary from office to office.
A loan officer can work for a mortgage bank, a credit union, or an institutional bank, and your employer can provide the funds for a mortgage loan directly to the borrower. The system for selling mortgages to buyers and investors helps ensure that there is liquidity in the mortgage lending market, which means that lenders have enough money to grant mortgages to everyone who wants a mortgage loan and is eligible to receive it. The main difference between these securities is that mortgage brokers are employed by a sponsoring broker, while originators and mortgage loan officers are employed by a bank or mortgage company. While mortgage brokers work for a brokerage agency, mortgage loan originators are usually employed by a bank or a mortgage company.
LendingTree doesn't include all the lenders, savings products, or loan options available on the market. MLOs gain a wide variety of knowledge about different types of home loans and use this information to help their clients choose the best loan for their specific situation. Studies have shown that borrowers who buy with at least three or five lenders typically save thousands of dollars on their loan costs. In addition to the obvious questions about how to get the best rates and fees, you'll want to have a list of questions handy to get an idea of the loan officer's experience and knowledge.
It's possible to work more than 40 hours a week, but this depends on the individual MLO and the number of mortgage loans you're processing at any given time. With the right balance between industry knowledge, communication skills and integrity, a mortgage originator can make the complexities of a home loan seem much easier and the process much smoother. Although the loan officer is the person who works with you, the lender is the institution that initially funds the loan. An MLO should help make the mortgage process easier for you, as it will guide you through the steps of buying or refinancing your home and funding your loan.
Usually, a loan officer works for a lender, which means that they are limited to the products offered by a particular lender. On the other hand, you'll have to wait for the mortgage lender to approve the loan and get paid a commission, which doesn't guarantee a fixed salary.
