How Mortgage Processors, Loan Originators, and Brokers Differ

Ameritrain 1 May , 2024 Ameritrain

You might have heard of Mortgage Processors, Mortgage Loan Originators, and Mortgage Brokers, but do you know how they differ? In this article, we will define the roles of Mortgage Processors, Loan Originators, and Brokers and examine their distinct responsibilities and functions.

To start, Mortgage Loan Originator (MLO) is an individual who works to assist borrowers with obtaining mortgage loans. In terms of their responsibilities, MLOs work directly for banks, mortgage lenders, or mortgage companies, such as mortgage brokerage firms. They help borrowers navigate the mortgage application process, collect necessary documentation, and ensure applicants meet the lender's criteria. MLOs are also involved in providing various loan products depending on the unique needs of each borrower.

As mentioned, MLOs can work for lenders or mortgage brokers. A Mortgage Broker is an intermediary between borrowers and multiple mortgage lenders, such as banks or other financial institutions. Brokers work to connect borrowers with lenders who can meet their specific needs. Mortgage brokers are independent professionals or firms that do not lend money directly. Instead, they work with multiple lenders to find the best mortgage options for their clients. Their role in representing loan products for various lenders is crucial, as not all lenders have the same products. Like MLOs, they can also assist with the mortgage application process, gather necessary documentation, and communicate with both the borrower and the lender.

Mortgage processors also play a critical role as they serve as a liaison between the MLO and the underwriter, who approves loans for borrowers. They provide clerical and administrative support to MLOs and underwriters and become involved in the loan process after the loan is originated. Processing verifies and validates a borrower’s loan application and supporting documentation, including residence, employment, and asset information.

In summary, while both Mortgage Loan Originators and Mortgage Brokers play important roles in helping individuals secure mortgage loans, MLOs can work directly for lenders or brokers. In contrast, Mortgage Brokers act as intermediaries connecting borrowers with various lenders in the mortgage marketplace. Processors ensure borrowers’ applications follow a defined process to help facilitate loan approval. Generally, most mortgage brokers start as MLOs before advancing to become brokers.

Together, these professionals form an intricate network, each contributing distinct expertise toward facilitating successful mortgage transactions. Whether you are a borrower or looking to start your career in the mortgage industry, understanding these roles empowers informed decision-making, leading to more favorable outcomes in the pursuit of homeownership and career outcomes.

To jumpstart your career as an MLO, visit today or give us a call at 877.406.0333