Disclaimer: Each of these definitions were taken from outside online resources. You can find the websites used listed below, as well as the company and author next to the definition.
When it comes to navigating the mortgage process, there are many people that will be immediately involved with your loan. We understand that it can sometimes be hard to keep everyone straight. Here's a definition of some of the major players that will be involved in helping your loan make it's way to closing.
Mortgage Loan Officers: "licensed representatives of a mortgage broker, mortgage bank, credit union or institutional bank who helps consumers apply for a home loan, and offers or negotiates the terms of a home loan for a fee." (Lending Tree, Denny Ceizyk)
Mortgage Broker: "an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages. A mortgage broker helps borrowers connect with lenders and seeks out the best fit in terms of the borrower's financial situation and interest-rate needs." (Investopedia, Julia Kagan)
Mortgage Lender: "A lender is a person or party who loans out money. In many cases, it’s a bank, credit union, or corporate entity, but sometimes, it may be an individual, a group of individuals, or an investor." (mortgage reports, Aly Yale)
Mortgage Processors: "A loan processor helps collect and organize your application paperwork before your loan file gets approved by the underwriter. Once you’ve completed a loan application, the mortgage loan processor takes over and plays an important role in guiding your loan to the closing table." (Lending Tree, Denny Ceizyk)
Underwriters: "A mortgage underwriter’s job is to determine how risky it would be to give you a home loan. With manual underwriting, a human being decides whether to approve your application. With an automated underwriting system, a computer algorithm will render a decision. However, a person is still needed at the end of the process in case any additional documentation is required and to make the final call." (Nerdwallet, Linda Bell)
Title Insurance Agencies: "An “escrow agent or officer” is a fiduciary who holds legal documents and funds for the benefit of others until all agreed conditions have been met. A “title agent” is technically a licensed insurance agent who issues title insurance to purchasers and lenders. A “closing agent” is technically the person who sits down with the buyer or seller or borrower (or all three) and goes over the documents with them and answers their questions. A “settlement agent” is technically the one who handles the accounting of the transaction and makes sure all the money is collected, verified, and disbursed in accordance with the terms of the contract and loan documents." (McCann & Hubbard, Jack McCann)
Hazard Insurance Representative: A Hazard Insurance Representative is an insurance agent that deals with homeowners insurance and navigating the hazards that a home could encounter during it's lifetime. "Hazard insurance is a term sometimes used to describe the coverages that homeowners insurance provides for certain risks, according to the Consumer Financial Protection Bureau (CFPB). If you hear someone mention hazard insurance, they are likely referring to a homeowners insurance policy. Some common examples of hazards (also referred to as perils) that are typically covered by homeowners insurance include fire, theft and vandalism, among others." (Allstate)
Appraisers: Professionals who "estimate the monetary value of; determine the worth of; assess" real estate (dictionary.com)
Resources:
1. https://www.lendingtree.com/home/mortgage/what-is-a-loan-officer/#:~:text=A%20mortgage%20loan%20officer%20is,home%20loan%20for%20a%20fee.
2. https://www.investopedia.com/terms/m/mortgagebroker.asp
3. https://themortgagereports.com/61542/what-is-a-lender-mortgage-lenders-explained
4. https://www.lendingtree.com/home/mortgage/what-is-a-mortgage-processor/#:~:text=A%20loan%20processor%20helps%20collect,loan%20to%20the%20closing%20table.
5. https://www.nerdwallet.com/article/mortgages/what-is-mortgage-underwriting
6. https://www.mhclosings.com/uncategorized/title-agent-closing-agent-settlement-agent-escrow-agent-whats-in-a-name/#:~:text=A%20%E2%80%9Ctitle%20agent%E2%80%9D%20is%20technically,them%20and%20answers%20their%20questions.
7. https://www.allstate.com/resources/home-insurance/hazard-insurance
8. https://www.dictionary.com/browse/appraise
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