Loan originators work primarily for financial institutions, such as mortgage lending companies, banks, and credit unions to process loan applications up to the actual fund disbursement. They may also decline applications and solicit, negotiate, and coordinate consumers’ loans (car loans, personal loans, residential loans) and/or commercial or business loans.
Prior to closing the loan, they must review and verify loan documents such as income statements, credit reports, appraisal reports, and title insurance, and ensure that all required documents are complete and accurate. They must ensure compliance with federal and state guidelines, rules, and regulations as well as the Real Estate Settlement Procedures Act (RESPA) and Truth In Lending Act (TILA), and their own companies' policies, procedures, and guidelines at all times.
Loan originators must provide customers with non-discrimination disclosures, cancellation disclosures, and other relevant disclosures and work closely with underwriters and follow their requirements. Strong communication and interpersonal skills are important in this position, as they must communicate and follow up with customers regularly regarding missing or updated documentation so that loans can be closed in a timely manner.
Loan originators must be able to multitask and work in a team environment, and advanced knowledge in FHA, Conventional, and VA mortgage loans is necessary for those who work with mortgage applications. They must also be familiar with multi-products, including non-prime and non-agency loans, and programs such as down payment assistance, home equity lines of credit, home improvement loans, and reverse mortgages. A bachelor’s degree in accounting, business, finance, or marketing is generally required for this position.
Loan Originator Tasks
Track and maintain credit and loan data.
Work directly with clients to review agreements, explain programs, and negotiate loans and terms.
Obtain and compile financial information to evaluate loan applications and their risk.
Generate new clients and referrals through strong relationship building.