Recently, a colleague of mine (Rhonda Porter, here in WA state) was quoted in the NY Times article about troubled borrowers, and recommended that borrowers “pull out and review their loan papers”, and referenced her as a certified mortgage professional. A blogger (Tanta, from Calculated Risk) picked up the story, and rightfully poked holes in it, and took a side swipe at Rhonda and another loan originator for using inflated titles.
It set me to pondering a critical question for those in our profession.
How are we to differentiate ourselves, if NOT by titles, to anyone that is not a direct referral, by anything more than our legal name? With every person and company trying to disassociate themselves from the bad actors and misdeeds of the recent past, it is very important for borrowers to be able to distinguish the good, from the bad, and the not-so bad.
Let’s start with the basics.
You can get your loan from a bank or direct lender, or you can get your loan wholesale from a mortgage broker, who places the loan with one of many banks that have a wholesale division.
A Loan Originator is a person that gathers information from a borrower, makes loan recommendations, prices and locks the loan, collects documentation and orders reports, and submits all of the data to an underwriter for approval. A Loan Originator can work for a mortgage broker (and can BE a mortgage broker), or may work directly for a bank. Loan originators at banks may call themselves Loan Officers. Loan originators that work for mortgage brokers can be W-2 employees or independent contractors (1099).
A Mortgage Broker has a direct contractual relationship with one or more lenders (often many), and can originate loans, or hire Loan Originators.
Confused yet? I’m just warming up!
Loan Originators, Mortgage Brokers and Loan Officers may legally choose to call themselves MANY other things on their business cards and stationary: Mortgage Counselor, Senior Loan Officer, Mortgage Specialist, Mortgage Grand Vizier, etc., in an attempt to convey some attribute they think will be appealing to the consumer. We may spend hours trying to come up with just the right phrase to convey our sterling qualities of diligence, empathy, honesty, etc.
In addition to the above mentioned phrases, there are a few national professional designations that a Loan Originator can acquire by taking certification courses, or pledging to follow the standards or code of ethics espoused by the entity: Certified Mortgage Planning Specialist, Ethical Lending Foundation, Upfront Mortgage Lender, NAMB, NARLO, etc. All involve paying some kind of fee to the organization, a code of conduct of varying stringency, means of disciplining and/or removing members, and offering to the Loan Originator some small measure of “name brand recognition”.
Taken as a whole, they are more alike than they are different.
And none of them carry the name brand recognition and attached respect that older, more established professional associations such as the AMA, ABA, or ADA have, nor are the requirements for membership nearly as strict.
So, now, the Loan Originator can use their name, attach a title of choice, and perhaps offer some professional credentials.
What about choosing a company or business name?
Stay tuned.
About Me
- Roger Ingalls
- Seattle, WA, United States
- Currently, I am a co-owner of Loan Doctors NW, where I enjoy the company of Vance Won, a licensed independent loan originator, like me. We originate as a net branch of Axia Financial (formerly Abacus), with access to the nation's top lenders, best rates and great local support. Before the lending business, I spent 15 years in the NW cable television industry as a Sales and Marketing manager. While there, I learned to manage and grow the owner's assets responsibly, and I apply what I learned every day in the mortgage business. I am fiscally conservative by nature (OK, my wife says I'm cheap, and I have the car to prove it), but generous with my knowledge and desire to help anyone who asks. The lending business gives me a wonderful opportunity to educate my clients in the often confusing process, and watch out for their interests. When not working on loans, I enjoy spending time with my wife, my three kids and my dog. I also try to stay young by playing guitar and singing in church and with friends.
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