A loan originator is a person or financial institution that helps a borrower apply for a new loan, and a lender processes that application. Loan origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the application). A mortgage loan originator (MLO) is a type of loan originator that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process. Mortgage loan originators can work for a bank, a credit union, or other lending institution, large or small. Some are salaried, but many are compensated by commission. The work of a mortgage loan originator can involve collecting a borrowers credit and financial information, assessing their needs and what loan options make sense for them, negotiating rates, and submitting their application for underwriting. The mortgage loan originator also helps the borrower make sense of the terms and conditions and explains their options. Before a mortgage loan originator can help a borrower through the financing process, they will need to convince them that working with them (and the lender they represent) is their best option.