The mortgage originator

A mortgage originator can be an institution or an individual responsible for completing a mortgage loan application and offering/negotiating terms with consumers.  Under the S.A.F.E. Act, both institutions and individuals must be licensed and registered in every state where first mortgage loans are offered (this is determined by property state, no necessarily state of residence of the borrower for out of state properties).  

Since most consumers will primarily interact with individual mortgage originators who work for lending institutions, we can focus more specifically on their role and responsibilities in the mortgage application process. 

Simply put, the mortgage originator is the primary source of contact with consumers.  He or she is the portal that consumers have to the lending institution and its product and services.   Not only does he or she have to solicit mortgage applications, but he or she also has to ensure that the mortgage application is filled out by the lender on time while maintaining balance between customer service and lending risk. 

Lenders operate under the jurisdiction of federal and state laws that require certain disclosures be made and laws are followed.  As you can imagine, compliance can drive up origination costs for many lenders and impact the borrower experience in fundamental ways.

I created a sample flowchart that shows the roles and responsibilities of a typical mortgage originator during the loan manufacturing process.  Keep in mind that even when others are in charge of completing successive steps, the originator is ultimately the one who is the “project manager” of all of this and has to ensure timely loan closing regardless of hiccups (of which there are many) that arise. 

Additionally, An institution or person who works with a recipient to complete a Mortgage dealing. A mortgage mastermind are either a mortgage broker or a mortgage banker, and is that the first mortgage capitalist. Mortgage originators square measure a part of the first mortgage market.

The primary mortgage market is very fragmented within the U.S. While there are many giant companies that originate an large share of mortgages, there are thousands of smaller companies and people, that additionally account for an large share of totalmortgage origination services.