A mortgage loan originator is hired by mortgage companies and banks to find and acquire potential borrowers in the market, who are interested in getting a new mortgage loan. Mortgage loan originators have to be qualified under a state’s laws to practice the act of being a mortgage loan originator, where he/she must be licensed prior after going through a background check, educational courses, written tests as part of the procedure, and authorization of credit. A mortgage loan originator helps customers look for loans that they are interested in getting, where there are two kinds of originators that one can come into contact with. One is a residential loan originator, and the other is a commercial loan originator.
A residential mortgage originator helps customers refinance or purchase a home, or to possess a mortgage for the purpose of having a second mortgage or a home equity line of credit. The other kind of loan originator (commercial) helps customers refinance or purchase commercial real estate.
Educational Requirements for a Mortgage Loan Originator
loansThe most basic requirement for a mortgage loan originator is to have a bachelor’s degree in economics or finance. If this isn’t something an originator wants to opt for as part of the educational process, there is an option of taking a pre-license educational course of at least 20 hours. Education is an important factor when completing the requirements of the state, law, or a company. Prior to taking any educational course, the mortgage originator must complete a written examination, as well pass the SAFE MLO test as part of the federal law.
This ensures that the originator complies with the test requirements of any state as well. Many companies hire mortgage loan originators after a three-month training program before they can be qualified enough to start work on the field. The courses required for completion are:
- Real Estate Settlement Procedure Act
- Mortgage principles
- Privacy laws
- Mortgage loan origination
- Loan process and underwriting
- Homeowner’s Protection Act
- Fair lending laws
- Truth in Lending Act
- Real Estate Settlement Procedures Act
- Completing a Bachelor’s Degree in Finance
This is an important prerequisite as part of the job profile of a mortgage loan originator. This degree is combined with work experience that ensues alongside the studying period, at credit unions, commercial banks, and the like. The course helps students understand the concepts involved under economics, money, and credit. The four-year program helps students choose an avenue that they are interested in when it comes to individual specializations. These can be under financial planning, financial analysis, banking insurance, and such. The following subjects are just some of the study outlines that students focus on as part of the degree certification:
- Financial Markets
- Loan Origination Quality Control
- Loan Processing
- Principles of Finance
- Business Law and Contracts
- Real Estate Loan Originator
- Ethics and Finance
- Financial Markets
- Basic Investing Strategies
Before students enroll in a finance degree, they must provide their GED scores as well as transcripts from their high school. Work experience is an important factor which students must acquire whilst applying for the four-year program to become official mortgage loan originators.
Mortgage loan originators usually work for about 45 hours a week, depending on how many loan applications come in from potential customers. This job can advance further into supervising staff and other originators that are new to the business, or working in a financial institution of a higher stature. The opportunities to advance further as a mortgage loan originator are quite vast, where one would have to be exceptionally qualified and well-tailored to the job’s skill requirements.
Responsibilities of a Loan Originator
A loan originator snags a catch of potential customers in further taking their interest forward when it comes to the loan procedure. Customers get in touch with a mortgage company or bank when they need to meet with an originator to help them through the process of using a loan for their varied purposes. A loan originator:
- Helps customers who do not qualify as fit candidates to get a traditional loan, therefore suggesting an alternative that can help them.
- Helps customers who are in debt and credit problems before letting them consider going in for a loan.
- Puts information together like credit reports, financial records, and bank statements when keeping track of customers who need to repay their loans.
- Performs tasks as part of mortgage, commercial and consumer roles depending on his/her qualifications in the mortgage business.
- Gathering paperwork from the customer after they’ve completed the loan application and made a decision on which loan to go for.
- Completing additional paperwork like tax returns, pay stubs and the like when it comes to loan processing.
- Communicates with other individuals in the company like the escrow officer, and underwriter during the loan process.
Mortgage jobs are an interesting area for students to get into and specialize. With added research, students can understand the workings of such a field prior to taking up a finance degree. Exploring one’s options can be beneficial before making a final decision. Prospective mortgage loan originators can also look upon the financial status of the previous years to see just how well this job is doing on an average. Focusing on getting all the requirements aligned as part of the job is important in order to stay on track when it comes to becoming a certified and credible mortgage loan originator.