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Understanding The Role Of The Mortgage Originator

July 02, 2012 | Comments: 0 | Views: 176

A mortgage originator (also known as "loan officer") is an employee of the mortgage lender responsible for processing mortgage transactions to lenders and borrowers. The originator is also responsible for procuring future mortgages paid through commissions.

Many individuals contact mortgage originators first in seeking mortgages. In fact, these originators are the "face" of the entire mortgage company and takes charge of all marketing efforts. The primary objective of a mortgage originator is to secure new mortgage transactions and extra referrals from interaction with every potential buyer.

The mortgage transaction process lasts within 3 - 6 weeks, regardless of the application. The originator is strongly involved in the application as well as "closing" process. In the middle of the mortgage period however, the transaction is handled by borrowers. The originator meanwhile will only be involved if the transaction is running smoothly.

Mortgage originators usually receive referrals for new clients. This is where the entire mortgage processing begins. Once the client already completed his or her application, interest rates will be locked in for mortgage transaction. The mortgage will be later handed over to the processor for final completion. This in turn results to procuring more businesses.

Here are other roles of the mortgage originator:

Order Verifications - Here, borrowers should provide a concise and well-written documentation of specific items recorded during the mortgage application. It is the job of mortgage originators to order written verification of mortgage payment settled. The "verification for employment" meanwhile should directly come from the employer. The borrower's name, employment status, salary and number of days he/she has been working for the employer must be stated in the document. The originator signs an authorization deal from the borrower in obtaining any personal records.

Order appraisals - The appraisal is only needed when borrowers will declare their loan amount to originators. A borrower can be pre-qualified for getting mortgage based from his credit record or monthly income. But if the appraisal is very low, the borrower will not receive any loan from the originator. Mortgage originators were given the condition of ordering appraisals from licensed appraisers. Also, they will inform appraisers the estimated value needed in determining the borrower and customer's loan amount. The originator is required to carefully review the appraisal in case of any discrepancies before presenting it to the "mortgage underwriter".

Educates the lender and borrower - The originator educates the lender and borrower on the best loan products that perfectly suits their needs. This usually includes offering them a range of loaning options and explaining the rates of monthly payments from each option.

Completes the application - The "residential" type of mortgage application is the first thing originators look for when determining the eligibility of borrowers. Incomplete applications results to rejection from the underwriter. Hence, a trained originator takes over the responsibility of completing the application truthfully.

Applying for a mortgage can be time-consuming. It may be quite difficult for the person to complete all required documents so hiring a mortgage originator is very important.

The author is a bond originator that specializes in home loans in South Africa. To read more visit

Source: EzineArticles
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