Mortgage Originator Job Description
A mortgage originator, or loan officer, is the employee of a mortgage lender who procures new mortgage transactions for the lender. The originator's primary responsibility is to bring new business into the bank. Typically, the originator is paid via commission, not salary, so he benefits financially by procuring new mortgages.
Other People Are Reading
-
Significance
-
The mortgage originator is the first person most individuals seeking a mortgage have contact with in the mortgage process. He is typically the "face" of the mortgage company and is in charge of his marketing efforts. The main objective of the mortgage originator is to procure new mortgage transactions, so he is always in the sales mode trying to procure additional referrals from each interaction with a new individual.
Function
-
Once the mortgage originator receives a referral for a new client, he provides that client with an application and the mortgage process begins. Once the client's application is complete and she is matched with a mortgage program, the interest rate is locked in for the transaction. At this point, the mortgage is typically handed over to a processor who works to complete the transaction. This frees up the originator to procure more business.
-
Time Frame
-
A typical mortgage transaction takes from three to six weeks, from application to closing. The originator is heavily involved with the client during the application and closing process. However during the middle time period, the transaction is handled by several other individuals, including a processor, an underwriter, and a closer. The mortgage originator only gets involved in the event that the mortgage transaction is not going smoothly.
Considerations
-
Due to the fact that the mortgage originator is most likely paid by commission only, the originator only gets paid if the mortgage transaction is closed. Therefore, the originator carefully vets each application to ensure that only applications with a high likelihood of closing are sent to his processor. Additionally, the commission-based salary makes the pay check of the originator vary from month to month. Typically, during the winter months, the mortgage industry is slower than the summer ones, yielding smaller pay checks.
Benefits
-
It is a mortgage originator's job to know the ins and outs of each mortgage product that he sells. The more knowledgeable he is on the subject, the more likely a client is to use his mortgage company. A knowledgeable mortgage lender can help a client to make the best decision on his mortgage options, as well as guide the borrower to make the best decision as to when to refinance his current mortgage.
-
References
- Photo Credit businessman with money in his pocket image by Wolfgang Kraus from Fotolia.com
