What do Mortgage Originators do?

Mortgage Originator

Mortgage loan originators support borrowers during the loan application and closing processes. A few examples of what this involves include collecting your credit and financial data, determining your needs and the best loan options, negotiating rates, and submitting your application for underwriting.

It’s important to note that a mortgage loan originator won’t decide whether to approve your loan application or how much money to give you. The underwriting division of the lender, which assesses your risk as a borrower, is in charge of handling that aspect.


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What is the difference between a Mortgage Originator and a mortgage lender?

Mortgage Lender

A bank or business that offers home loans to borrowers is known as a mortgage lender. Additionally, some lenders provide student, personal, and auto loans. Some provide mortgages and another financing for homes. A lender could occasionally provide a wide range of loan options.

You get the money to buy your house from a mortgage lender and you may or may not make the payments to that institution. 

Mortgage Originator

A mortgage originator is a company or individual who collaborates with a borrower to complete a home loan transaction. The initial mortgage lender is a mortgage originator, often called a Loan officer or a mortgage banker. Mortgage originators, who are a member of the primary mortgage market, must cooperate with underwriters and loan processors from the application date to closing in order to gather the necessary data and help the file advance through the approval process.

How do Mortgage Originators make money?

A commission is typically paid to mortgage loan originators for the loans they create. Each banking institution has a different commission amount and calculation. Mortgage loan originators typically receive a salary plus a modest percentage of the total mortgage amount from larger banks and are 100% commission with mortgage companies. 

How do I verify a Mortgage Originators license?

You can verify a Mortgage Originators license with The Nationwide Mortgage Licensing System & Registry (NMLS) who keeps a list of licensed mortgage originators in its database.

Additionally, by contacting your state regulator, you may typically determine whether a mortgage originator is licensed or whether disciplinary action has been taken against the individual.

Who regulates mortgage originators in the US?

The Consumer Financial Protection Bureau (CFPB) regulates mortgage originators in the US. Several statutes, including the Real Estate Settlement Procedures Act and the Truth in Lending Act, are enforced by the CFPB. These rules mandate that lenders provide information to homebuyers both before and during the mortgage term. If you are having issues with a new or existing mortgage, contact the CFPB.

How many licensed mortgage originators are in the US?

Currently, there are about 216,112 loan originators working in the US. Women make up 44.7% of loan officers overall, while men make up 55.3%.