The main difference between these securities is that mortgage brokers are employed by a sponsoring broker, while originators and mortgage loan officers are employed. A loan officer (also called an account executive or loan representative) represents the borrower before the lending institution. From choosing a loan product to closing, a loan officer will help you through the process. Employers can pay loan officers a commission or salary for their services.
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. By definition, lenders are those who put the money to provide financial support to a customer, who has agreed to repay the loan within an agreed period of time and at a mutually determined interest rate. When you call a bank or credit union to apply for a loan, provide supporting documents, or determine if you're pre-eligible, you'll talk to a loan officer. Mortgage loan originators guide prospective homeowners through the mortgage approval process from the start of their loan application to the closing of the property itself.
Before meeting with either of you, spend some time researching the best offers currently available and the types of loans available. They are independent contractors who offer the credit products of several lenders, called wholesalers. They also know the rules of the banking industry and how these rules will apply to every loan application. Meanwhile, mortgage loan originators enjoy job security within the mortgage industry, can help many customers become homeowners and, like mortgage brokers, will enjoy a flexible schedule that changes daily.
A loan officer works for a bank, credit union, or other mortgage lender, and will only offer the programs and mortgage rates that are available at that institution. Both mortgage brokers and loan officers consider themselves mortgage loan originators (MLOs) and must meet strict federal requirements to help negotiate mortgage loans. And before making the final decision among several available lenders, the broker will help you calculate and compare the long-term costs associated with different types and terms of loans. Loan officers must have a thorough knowledge of credit products, the rules and regulations of the banking industry, and the documentation required to obtain a loan.
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. Learn about the differences between mortgage brokers, lenders and loan officers so you can be informed when you take the next step.
