What is a loan originator?

A loan originator is a person who helps borrowers obtain loans from a lender. In California, loan originators must hold a valid loan originator license from the California Department of Business Oversight (DBO). A loan originator is responsible for helping borrowers understand the loan process, providing them with details about the loan product and rates, collecting and evaluating the borrower’s information, and helping to ensure the loan follows the lender’s regulatory and legal requirements. Loan originators also advise borrowers on loan options, recommend products and services, collect payments, and facilitate loan closings. Loan originators must adhere to ethical practices and must be registered and licensed with the DBO. This is to ensure that the loan originator is qualified to handle borrowers’ financial transactions, as well as protect the borrowers’ information. Loan originators are also responsible for keeping borrowers informed and updated of any changes in their loan terms, such as late payments or credit score changes. Loan originators must meet specific state and federal laws and requirements in order to obtain their license and be able to operate in California.

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