Loan Officer?
Loan Officer used to be the most popular job title for a person that originates home loans. There was a problem though, each loan officer chose their job title (or the Mortgage Company chose for them).
Common ‘Loan Officer’ job titles were:
- Loan Officer (Most Popular)
- Mortgage Loan Officer (Helpful to know they work with home loans versus other loans)
- Mortgage Officer
- Home Loan Officer
- Lending Officer
- Loan Agent
- Home Loan Agent
- Mortgage Loan Agent
- Loan Consultant
- Mortgage Loan Consultant
- Loan Adviser
- Mortgage Loan Adviser
- Mortgage Banker
- Loan Originator
- Mortgage Loan Originator
What is a Loan Officer?
Do those job titles perform different functions? Does a Loan Officer have to be licensed? Loan Officers were not always required to be licensed. Their job entailed many of the same tasks. The different job titles for the same position created confusion for consumers. Loan Officer was the most widely accepted job title. Since they are originating loans, specifically home loans, the title Mortgage Loan Originator (MLO) became the official job title. Mortgage Loan Originator must be licensed. Find out if your Mortgage Loan Originator is licensed here.
Who is Required to Obtain a Mortgage Loan Originator License?
Any person who originates residential home loans must be licensed. All licenses are applied for and maintained through the Nationwide Mortgage Licensing System (NMLS). The license must be renewed annually between November 1 and December 31. See here for more information on obtaining a license.
A mortgage loan originator is an individual who, for compensation or gain, or in the expectation of compensation or gain, takes a residential home loan application or offers or negotiates terms of a residential home loan.
A residential home loan means any loan primarily for personal, family or household use that is secured by a mortgage or deed of trust, which contains 1 to 4 residential units. Dwelling includes an individual condominium unit, cooperative unit, mobile home and trailer if it is used as a residence.
Mortgage Loan Originator is not:
- An individual who performs purely administrative or clerical tasks on behalf of a person meeting the definition of a Mortgage Loan Originator.
- An individual who solely renegotiates terms for existing home loans held or serviced by his or her employer and who does not otherwise act as a Mortgage Loan Originator.
- An individual that is solely involved in extensions of credit relating to timeshare plans.
- A registered Mortgage Loan Originator who is an employee of a depository institution.
Despite any regulations stating a Mortgage Loan Originator does not have to be licensed, many Mortgage Lenders will require a Mortgage Loan Originator to be licensed.
We hope this helps clarify any confusion between Loan Officer and the new, regulated Mortgage Loan Originator.