A mortgage loan originator (MLO) is an individual or institution that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process. Mortgage loan originators can work for a bank, a credit union, or other lending institutions, large or small. They can be a lending company, mortgage broker, or loan officer. Mortgage loan originators help borrowers through the mortgage application process, from initial inquiry to closing. Their work can involve collecting the borrowers credit and financial information, assessing their needs and what loan options make sense for them, negotiating rates, and submitting their application for underwriting. Mortgage loan originators are a point of contact between the borrower and the lender, and they can collect the borrowers financial information, process mortgage applications, help them make sense of the terms and conditions, and explain their options. Some loan originators can appear and act like salespeople because they need to convince the borrower that working with them (and the lender they represent) is their best option.
In California, any person who originates residential mortgage loans must apply for and receive a mortgage loan originator license from the Department of Financial Protection and Innovation. All licenses are applied for and maintained through the Nationwide Multistate Licensing System and Registry (NMLS). The license must be renewed annually between November 1 and December 31. An individual who performs purely administrative or clerical tasks on behalf of a person meeting the definition of a mortgage loan originator is exempted from obtaining a license.
In summary, a mortgage loan originator is a person or institution that helps a prospective borrower get the right mortgage for a real estate transaction. They work with the borrower from application and approval through the closing process, and they can be a lending company, mortgage broker, or loan officer. Mortgage loan originators are a point of contact between the borrower and the lender, and they can collect the borrowers financial information, process mortgage applications, help them make sense of the terms and conditions, and explain their options. In California, any person who originates residential mortgage loans must apply for and receive a mortgage loan originator license from the Department of Financial Protection and Innovation.
