What are the duties of an originator?

Asked by: Arielle Lang  |  Last update: July 2, 2025
Score: 4.6/5 (5 votes)

Duties of Mortgage Originators To compile what is known as a “loan package,” the originator collects the documentation needed from a client for the mortgage application process, reviews the documentation, and processes the application before moving on to the next steps.

What is a mortgage originator's job description?

Originate and evaluate mortgage loans according to company guidelines and standards. Submit and monitor the status of applications. Maintain good relationships with clients by keeping them informed. Interact with realtors, appraisers, and sales agents as needed.

What does it mean to be an originator?

Meaning of originator in English

the person who first thinks of something and causes it to happen: He is best known as the originator of a long-running TV series. SMART Vocabulary: related words and phrases. Inventing, designing and innovation.

What is the difference between a lender and an originator?

Key takeaways. A mortgage loan originator (MLO) is a person employed by a lender to help borrowers through the mortgage application process. Mortgage loan originators do not decide whether to approve your loan — they act more as an administrator, pushing paperwork through and explaining the loan's terms.

What is an origination job?

Loan Originators evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. Advise borrowers on financial status and payment methods.

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What is the role of an originator?

The mortgage originator is the primary lender and can act as a mortgage banker or broker. Originators fall under the primary mortgage market division and collaborate with loan processors and underwriters throughout the entire process from start to approval status, and handle the collection of relevant documentation.

What is the function of origination?

Origination involves the acts of locating, evaluating, and creating new financial claims issued by the institution's clients. If the originator maintains the ownership of the new asset, it would set its own standards for risk and return for acting as principal.

What is the primary role of the loan originator?

They are crucial in the mortgage process. Their primary role is to assist clients in finding the right mortgage. They assess each applicant's financial profile to recommend suitable loan options.

Is being a loan originator worth it?

As an MLO, you may be able to enjoy a flexible schedule, no cap on your earnings, and the opportunity to help people's dreams come true. Plus, because people will always need to buy places to live, you'll enjoy solid job security. It's worth noting, though, that mortgage loan originating is a highly regulated industry.

How do loan originators get paid?

They're often paid on commission, meaning a percentage of the loan amount will go to the mortgage loan officer. This amount can come from one of two places: either the loan originator (like the bank or mortgage seller), or from a loan origination fee paid by the borrower.

What is an originator also known as?

beginner, father, founder, founding father. a person who founds or establishes some institution. groundbreaker, innovator, pioneer, trailblazer.

How hard is it to be a loan originator?

With study, hard work, and dedication, new mortgage loan officers can progress rapidly in their career. The most common challenges include meeting sales metrics, keeping up with legal requirements and industry regulations, and meeting the demands of clients with unique needs and high expectations.

What does originator mean job?

originator | Business English

the person who first thinks of something and causes it to happen: There are lots of reasons why the inventor or originator of an idea may not get the lion's share of the rewards. FINANCE. a person or company that arranges loans or other investments: loan/mortgage originator.

What is a deal originator job description?

They are responsible for identifying and sourcing new business opportunities, making initial contacts, conducting preliminary evaluations, and facilitating the progress of deals to the negotiation stage.

Is a loan originator the same as an underwriter?

Mortgage Loan Originators work with borrowers to initiate and guide them through the application process, while Mortgage Loan Underwriters assess the risk associated with the loan application and make lending decisions based on established criteria and regulations.

What is the origination fee for a loan?

An origination fee is typically 0.5% to 1% of the loan amount and is charged by a lender as compensation for processing a loan application. Origination fees are sometimes negotiable, but reducing them or avoiding them usually means paying a higher interest rate over the life of the loan.

Do loan originators work from home?

"It's one of the most flexible jobs out there," says Glover. "You can fit your schedule around client meetings, and most employers are supportive of you working from home, in my experience, that's been a common practice for loan officers even before the pandemic."

What is the difference between a loan officer and originator?

The easiest way to remember the difference is that loan officers are almost always people while loan originators can be people or financial institutions. Another way to think of it is that a loan officer could be employed by a loan originator.

What does an originator do?

Mortgage originators are part of the primary mortgage market. They must work with underwriters and loan processors from the application date until closing to gather the necessary documentation and guide the file through the approval process.

What is the loan originator rule?

What is the Loan Originator Rule about? The Loan Originator Rule generally regulates how compensation is paid to a loan originator in most closed-end mortgage transactions, including: Prohibiting a loan originator's compensation from being based on the terms of the transaction or a proxy for a transaction term.

What type of loan officer makes the most money?

High Paying Mortgage Loan Officer Jobs
  • Mortgage Sales Manager. Salary range: $75,000-$242,000 per year. ...
  • Commercial Real Estate Lender. Salary range: $95,000-$165,000 per year. ...
  • Mortgage Consultant. ...
  • Licensed Mortgage Loan Officer. ...
  • Mortgage Loan Funder. ...
  • Mortgage Broker. ...
  • Mortgage Banker. ...
  • Mortgage Advisor.

What is the loan origination process?

Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the application). For mortgages, there is a specific mortgage origination process.

What does origination mean?

Definitions of origination. noun. the act of starting something for the first time; introducing something new. synonyms: creation, foundation, founding, initiation, innovation, instauration, institution, introduction.

What is the point of origin?

: the place where something comes from : the place where something originates. The package's point of origin was somewhere in the U.S. the point of origin of the fire that burned the building down.