Origination – Mortgage lending cycle

The role of the mortgage loan originator or the loan officer is to make customers fully aware of the mortgage market conditions and the market available financial flexibilities. The loan originator plays an important role in bringing the mortgage banking investment quality loans. He needs to have a broad idea about the market because the customers approach the loan officer for the basic idea about the mortgage market and the suitable loan for him. So the loan originator should have a complete knowledge about the mortgage market and he should have good explanation power so that he can make the customers understand better and bring quality loan investments.

The success of the loan originator depends on his/her knowledge about the mortgage market in-depth. He should have sufficient idea about the loan production process and the mortgage lending cycle. Moreover, the loan originator needs to have in-depth knowledge about some of the areas like different types of loans and loan programs available in the mortgage market and should explain the customer about the major players available and their roles. He should inform the customer regarding the documents required for the initial process and explain about the documents importance. Loan originator needs to inform the customers about the physical conditions of house or units available in the market and identifying groups of people to work with the parties such as builders, developers and real estate agents.

So without understanding and knowing about these above factors the loan originator can not become a successful sales person. He should have a proper plan with him before a customer approaches him and should have good convincing power also. Until and unless the loan originator has these qualities with him, he may not guide any customer. So his knowledge on the mortgage market and guidance to any customer is very important for a customer to go with a suitable loan type and program.