Mortgage originators are loan officers who are in charge of submitting consumer loan applications as well as actively seeking out potential borrowers. A high school diploma is required to work as a mortgage originator, and some financial institutions require lenders to have a college diploma. Lenders must be well-versed in credit management and underwriting, so anyone interested in working as a mortgage originator must first complete formal credit training. In some countries, laws also require lenders to complete a licensing or certification course.
A mortgage originator must be able to explain how long-term home loan products’ interest calculations and payment structures are set up. As a result, some financial institutions demand that anyone interested in working as a mortgage originator have a bachelor’s degree in finance, accounting, or a related field. In some countries, there are college courses specifically designed to prepare people for a career in mortgage lending.
In-house trainers are frequently employed financial institutions to conduct credit training classes for newly hired mortgage originators. These classes teach new lenders how to use financial equations like the Debt-to-Income (DTI) ratio to determine whether prospective borrowers can afford loans. Many countries have national consumer credit bureaus that collect data on consumers’ borrowing habits and payment histories. Anyone interested in becoming a mortgage originator must first take credit report training classes. Apart from formal education, most mortgage originators receive on-the-job training, which typically entails processing loan applications under the supervision of an established lender.
Mortgage lenders must register with a local or national government agency in some countries. The registration process usually entails the mortgage lender passing a test, followed the payment of a licensing or certification fee successful applicants or their employers. In many cases, mortgage lenders are required to attend continuing education classes on a regular basis. The lender’s knowledge of new lending laws and widely available mortgage products is tested in these classes. If lenders do not complete the classes, their mortgage lending licenses may be revoked.
Many countries have laws governing the sale and marketing of certain types of home loan products, such as reverse mortgages and other negative amortization loans. Before they can solicit sales of these products, anyone interested in becoming a mortgage originator must take certification classes. Because demand for unconventional products is often lower than for traditional home loans, some financial institutions only allow experienced loan officers to sell these products, avoiding the need for newly hired lenders to obtain this certification.