What Is A Mortgage Loan Originator?
A mortgage loan originator is an individual or institution that assists the borrower in the process of the mortgage. They are the first point of contact for the borrower.
A mortgage loan originator usually works with a mortgage lending firm. They provide expert advice on the right mortgage for the borrower, helping the borrower apply for the mortgage until their mortgage application gets approved and closed.
Mortgage loan originators can also act as a salesperson by convincing a potential borrower that their mortgage service is the best. They can either be a mortgage broker or mortgage banker.
Mortgage loan originators are integral to the process of loan initiation and acquisition. They are the ones that convert prospective borrowers into actual customers for the mortgage company.
They also serve the interest of the borrower by helping them get the best deal possible. They educate the borrower on the available options and give expert opinions. The mortgage loan originator, however, does not make the final decision for the borrower. Hence, they serve as an intermediary between the loan borrower and the lending company.
Mortgage loan originators are generally paid a commission when the loan deals get closed. In these regards, mortgage loan originators may be biased or not completely objective during interaction with the prospective borrower. It is, therefore, the borrower’s job to carefully scrutinize their mortgage loan originator and ensure he is a trustworthy person.
Mortgage Loan Originator Example
When a person seeking a loan visits a lending firm, the mortgage loan originator is his first contact. The mortgage loan originator seats him down and goes over every available option with him. The loan originator then offers his expert advice on which option is best for him. It is then left to the borrower to consult with his team and make a final decision, after which the mortgage loan originator begins with his loan application process.
The mortgage loan originator helps get his application approved and at the best interest rate.
Once the loan deal is closed, the mortgage loan originator then gets his commission from the deal.« Back to Glossary Index