A mortgage loan originator (MLO) is a person or an organization that cooperates with borrowers to finalize a mortgage loan transaction. MLOs can include mortgage brokers, mortgage bankers, and other types of professionals. Mortgage loan originators generally work on new mortgages, hence the term “originator”.
However, sometimes original mortgages are sold into secondary mortgage markets; these transactions can often involve different professionals. On the whole, mortgage loan origination has to do with first-time mortgage transactions between the lender and the borrower.
Loan originators perform a variety and tasks with clients. Basically, their main duty is to finalize a mortgage transaction with the borrower in preparation for a home sales transaction. At the heart of it, loan originators are sales persons, and their task is to promote their mortgage product to clients and interested buyers. The MLO may perform tasks like:
Lastly, loan originators may also engage in some other actions, such as light advertising or doing special presentations. This all depends on the individual professional’s practice, as well as company policies.
Mortgage loan originators can sometimes be held liable for losses experienced by a mortgage borrower. This can occur if:
In such cases, a private suit may be necessary against the originator. This can result in a damages award to resolve the dispute. In some instances, criminal charges can also arise.
The laws governing mortgages and mortgage professionals often vary by region. You may need to hire a real estate lawyer if you need help with any type of mortgage or home loan issue. Your attorney can help guide you through the loan approval process and can advise you on your rights and options. Additionally, if you have any legal disputes, your lawyer can provide you with representation during a legal claim in court.
Last Modified: 07-08-2015 01:46 PM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.