Who’s involved in the Mortgage Transaction
Mortgage Lenders are the financial institutions/mortgage bankers that are responsible for originating, processing, underwriting and funding mortgage loans.
Mortgage Servicers are the financial entities that are responsible for communicating with borrowers after a mortgage loan closes regarding mortgage accounts. The servicer of a mortgage may or may not have originated and initially closed the mortgage loan. They handle all aspects of the loan after it is closed, including the collection of monthly mortgage payments, maintaining escrow account (if applicable), etc. You will be notified if your mortgage servicer ever changes.
Mortgage Investors purchase home loans that mortgage lenders originate. These investors often package a lot of loans into mortgage securities that are sold in global capital markets, which allows mortgage lenders to make more mortgages and keep the cycle going. This creates liquidity needed to always lend to new homebuyers. Examples of Mortgage Investors include Fannie Mae and Freddie Mac, among others.
Mortgage Loan Originators (also referred to as Mortgage Loan Officers, Loan Officers, and other similar titles) collect, review and evaluate the credit, financial and employment information of potential borrowers to determine if they qualify for a mortgage, and provide various financing options available. The mortgage application process is begun with loan officers and they keep track of the status during the approval process.
Loan Processors prepare the borrower’s mortgage loan information and application for mortgage underwriting. They ensure all proper documentation required for the specific loan program being applied for are included. Additionally the loan processor checks that all numbers are calculated correctly and that everything is in order to ensure a timely underwriting approval and closing.
A Mortgage Underwriter will assess whether a borrower and the selected property is eligible for the applied loan program. Their decision is based on the borrower’s credit history, employment history, assets and liabilities, and other factors in addition to the property’s value and characteristics.
Real Estate Appraisers evaluate the property being purchased to determine how much it is worth relative to the current market and it’s condition.
Real Estate Agents (Realtors® are real estate professionals who are members of the National Association of Realtors) assist homebuyers in the process of finding homes that meet their specific needs including the neighborhood, design, features, school district and price. Buyer’s agents represent the homebuyer (vs. a listing agent, who represents the seller and the seller’s interests) will advise the homebuyer throughout the home buying experience and will handle negotiations with the seller.
Home Inspectors examine the condition of the home being purchased. They produce a report for the homebuyer to ensure the buyer is aware of concerning safety issues as well as items requiring repairs or maintenance.
Closing Representatives (sometimes this role is filled by an escrow officer, an attorney or title company), oversee the settlement, closing or close of escrow of a mortgage loan. They handle recording the legal documents involved and document and disburse the money between the various parties involved.