Understanding What A Mortgage Loan Originator Does

The mortgage loan originator (MLO) is a person who helps you choose your mortgage, and understand all of its terms. They are there to make sure you know everything about it before getting into any agreements with them. So as long as they do their job, the right borrowers will be able to get loans without problems or complications.

What is a Mortgage Loan Originator?

Mortgage loan originators are the backbone of home buying. They help borrowers find their dream house and then get them into that lender’s approval process quickly so they can live happily ever after.

Mortgage Loan Originator Job Responsibilities:

Increases mortgage loan portfolio by developing business contracts.
Resolving problems throughout application processes.
Building positive relationships with clients.
Completing mortgage loan processing and closing.
Mortgage loan originator’s work and responsibilities vary depending on the company they are working for.

What Does a Mortgage Loan Originator Do?

A mortgage loan originator helps you get mortgage products, answer questions, collect documents, and work with you to complete the mortgage application process. Mortgage loan officers usually work for a bank or mortgage company. They work in an office where they meet potential clients and conduct business.

Some of the Work Performed by Mortgage Loan Originators Include:

Interviewing potential mortgage applicants.
Monitor loan progress from application to closing.
Gathering and evaluating an applicant’s background financial information.
Submitting loan applications on behalf of borrowers.
Following the application process through to the end, including appraisal and underwriting.
Providing continued assistance to the borrower during and after the application process.

Mortgage Loan Originators Fees:

The mortgage loan originator charges vary depending on the institution but often include a processing and underwriting fee. On average they receive 0.5 – 1% commission for their work in getting you your dream home.

Do Mortgage Loan Officers Need a License?

Mortgage loans come in different types and require certain qualifications, but it is important to work with a qualified loan officer who has knowledge of your state’s home mortgage business.

Nationwide banks do not have individual licenses necessary for operating within each respective jurisdiction so make sure you’re working closely alongside someone that understands what they need before applying.

The mortgage loan officer must be licensed by individual states. A credit union could have a person licensed in multiple states, even if they work only within one state’s borders.

To become a mortgage loan originator, one should have the following licensing requirements:

Complete the license education 20 hours in advance
Score a minimum of 75% on the two-part nationwide SAFE Mortgage Licensing
Act Exam, developed by the Nationwide Mortgage Licensing System (NMLS).
Agree to a thorough background check.
Commit to pursuing mortgage education each year.

Mortgage Loan Originator’s Salary?

The salary of a mortgage loan originator depends on the company they work for, their experience, and how many home loans are closed per month.
If the mortgage loan originator is a broker, they may be paid by their clients or by commission from the lender for which they are a partner to close the loan. If the mortgage loan originator is a loan officer, they will usually be paid an hourly rate or salary along with a commission earned per loan.