What Is a Mortgage Loan Originator?
Whether you are refinancing your home or searching for a new one the first person you will working with is a mortgage loan originator (MLO). There are many different titles for this sales advisory position. Other common titles similar to MLO are Loan Officer, Mortgage Banker or Home Loan Advisor. Loan Originators can work for banks, credit unions, direct lenders or a mortgage broker. They are typically paid on a commission basis but this can vary from one lender to another.
What a MLO does is work with a consumer to learn of their goals and provide advice or options of different mortgage products to consider then select one. Once an application is taken and a mortgage program selected the MLO will review the rate and costs associated. The MLO will ask for certain documents relating to income and assets and possibly other miscellaneous documents and when complete will submit the entire package to an underwriter to review the risks of the loan and hopefully obtain a mortgage approval.
MLOs in today’s industry must be licensed and the federal and state level so you should feel more comfortable there is a standard out in the marketplace. A MLO is their to answer any questions right up and through to the closing.
It is always best when shopping for a mortgage to talk to more than one lender to gain the best financial terms you can.
As always, work with a trusted mortgage advisor when considering any type of mortgage financing.