Applying for a home loan is complex, and it becomes even more overwhelming when choosing between hiring the services of a Mortgage Loan Officer (MLO) and a Mortgage Broker. These two professionals play crucial roles in sourcing funds for your dream house; however, the way they work and what each offers vary. It is important to comprehend these differences to make the right decision regarding your home financing. This guide compares the roles and functions of Mortgage Loan Originator vs. Mortgage Broker, along with their advantages and possible disadvantages, to help you choose the best option for obtaining a home loan.
Mortgage Loan Originator (MLO):
A Mortgage Loan Originator (MLO), also known as a loan officer, is an employee of a company that provides loans, whether that is a bank or a credit union. Their principal obligations involve explaining the loan application process to borrowers, from the time they approach the company for a loan until the loan is closed. They help clients understand different types of loans, necessary paperwork, and adherence to the rules for issuing credits.
Key Responsibilities of a Mortgage Loan Originator:
- Consultation: Advanced client interviews to engage in detailed investigations of their current and potential financial positions.
- Loan Options: Belonging to this type indicate the various types of mortgage products in the market and advise clients to choose the right product.
- Application Process: Help clients with some of the paperwork involved in the loan application and obtain all relevant documentation.
- Communication: Make myself available and accessible primarily for the borrower and occasionally for the lending institution to keep clients informed of the progress of the loan application.
- Compliance: Understand and ensure that all the processes involved in lending of money and other assets comply with the standard set legal provisions.
Mortgage Broker
On the other hand, a Mortgage Broker is an individual/person, Company, or firm that acts as a link between the borrower and various lenders. Whereas MLOs are employees of a lender and may only look for loan products that are offered by the affiliate company, brokers independently compare the terms and interest rates of different loans for the benefit of their clients.
Key Responsibilities of a Mortgage Broker:
- Market Analysis: Analyze the current state of mortgages and see which lenders provide the most beneficial conditions to clients.
- Application Submission: Acquire documents from the clients, complete the entire loan application, and forward the same to as many lenders as possible.
- Negotiation: This can be in the form of persuading lenders to offer the most favorable deal to the borrower.
- Guidance: Relay complex information to clients to ensure they make the right choices on which loan products to take.
- Closing: Coordinate with the other relevant departments and offices to keep the closing process as seamless as possible between the time of loan approval and the acquisition of the home.
Join the Mortgage Broker - Loan Factory
Are you a loan officer bored with your current position? If you are in search of a new place to be, Loan Factory may be the right company for you! Employees experience a friendly work setting, competitive wages, and a comprehensive package. Together, your talents will blossom, you will help create positive changes for your clients, and you will become part of the winning team at Loan Factory.
Why Choose Loan Factory?
Here are some benefits that Loan Factory offers to ensure a promising future for its employees:
1. FREE Best Technology Platform: Expanding your loan factory MLOs, you get access to the latest in technological advances, so that no matter how much competition there is in the mortgage business you are set to rise to the challenge.
3. FREE Training from Thuan Nguyen: Loan Factory offers MLOs the opportunity to receive exclusive training from top recognized LOs in the country - Thuan Nguyen. This valuable training will help you sharpen your skills and elevate your performance.
4. FREE Marketing Support: Marketing assistance - Loan Factory assists its users by offering leads so that you can have numerous clients. Their resources and experience can ultimately have a positive effect on your MLO's performance.
5. FREE Underwriting Support: Loan Factory provides underwriting services, with which we assist you in directing your loans and ensuring they go through the approval process smoothly.
6. No Hidden Fees: Other mortgage companies may have fees like a monthly fee, a desk fee, or various junk fees, but Loan Factory has NO fees of those types. This means that you can conveniently manage your affairs without any shock costs hitting you at one time.
7. No Minimum Production Fee: There is no minimum production fee you have to pay to work with Loan Factory, and it helps you progress without limitations while reaping commissions.
8. Competitive Commission Structure: Loan Factory is one of the programs that offers its partners 100% commission with a flat fee of $595 and $500 for one-time processing fees.
9. Commission (1099 or W2) Up to 250 bps: As self-employed contractors, MLO-s have more freedom to decide between 1099 and W2 compensation schemes based on their needs and goals. They are selling it to other people and you can make up to 2. 5 points commission.
10. Receive Company Leads in 41 States: Loan Factory offers its MLOs company-provided leads in 41 states, which gives you access to a diverse pool of clients and broadens your chance of attaining success.
11. Licensed in 48 States: Loan Factory's extensive licensure allows you to work in 48 states, offering a wide geographical reach for your lending services.48 different states, thus providing an impressive coverage of the states within the United States.
Conclusion
By understanding the key differences between mortgage loan originators and mortgage brokers, you can make an informed decision about the path that best suits your needs. Embark on a fulfilling career journey with Loan Factory, where your expertise is valued, and your success is our priority. Join us today and become a key player in helping individuals achieve their dream of homeownership. Visit our website www.loanfactory.com/loan-officer or call the hotline at 714-591-8143 to explore exciting opportunities and take the next step in your career.
