Loan originators are professionals who assist borrowers in selecting the appropriate mortgage option that meets their individual needs and budget. Typically, they are employed by either banks, mortgage brokers or direct lenders and collaborate with their clients throughout every step of the loan application process.
The mortgage loan process can be a lengthy and intricate one, so it’s essential to be familiar with the professionals working on your behalf during this period. Two common loan-related professionals are the loan originator and loan processor.
Mortgage loan originators provide guidance and education to borrowers on the various mortgage options available to them. Furthermore, they assemble a loan package–the collection of paperwork needed by borrowers to submit to their lender for approval–and ensure everything runs smoothly.
They gather all necessary documents for a loan, review them and process them before sending them to an underwriter. Furthermore, they ensure that clients meet certain eligibility requirements for the type of mortgage being offered as well as make sure their income, debts, credit report and other financial data is accurate.
Loan originators often receive commission from their employer, which can be an excellent way for them to grow their business. A percentage of the total loan amount may be earned as commission, which could amount to a substantial sum of cash.
A mortgage loan originator’s salary will depend on their job, the volume of loans they close and their experience level. They typically start off with a base salary which is then supplemented by commission based on sales volume.
The mortgage industry is highly regulated, and lenders must adhere to stringent guidelines in order to remain secure. This includes abiding by state and federal regulations as well as submitting the appropriate paperwork to relevant authorities.
License mortgage loan originators are available in all 50 states. To become certified, an individual must complete the necessary training and pass the mortgage exam; this could take up to a year; however, temporary authorization from their state may be granted while waiting for full licensing.
In November 2019, a federal law went into effect that allows mortgage loan originators to operate temporarily in certain states while their license is being processed. This is an ideal solution for mortgage professionals who want to gain experience before obtaining full licensure, or those needing time off from traditional lending duties.
The mortgage loan process can seem intimidatingly complex, especially to first-time homebuyers or those who haven’t purchased a house in some time. Fortunately, there are experts who specialize in this field that you can rely on to guide you through it without making any mistakes along the way. Hiring an experienced loan originator and processor are crucial components of having an efficient mortgage transaction – ensure you select someone who will guarantee you have an optimal financing experience.