A commercial mortgage banker is a professional in the business of originating commercial mortgage loans, typically earning a commission based on a small percentage of the loan amount.
A computer-based network of lenders that allows affiliated real estate brokers, builders, or advisors to originate loans at the site of the home. Provides a streamlined process whereby a person can buy a home and apply for a loan at the same place and time.
A disbursement refers to the act of paying out money, often seen in contexts like loan origination or the dissolution of investment ventures.
Discount points are fees paid directly to the lender at the time of the loan origination to reduce the interest rate and lower monthly mortgage payments. Frequently used in conventional, FHA, and VA loans, they offer borrowers flexibility in managing loan costs.
A loan application fee is a non-refundable charge required by a loan originator to cover the credit report, property appraisal, and other incidental expenses associated with underwriting a loan.
A Loan Discount is a type of fee that some lenders charge at the origination of a loan to lower the interest rate charged during subsequent payments. It’s commonly known as discount points.
Loan Origination is the comprehensive process of creating a new loan, which spans from the initial marketing efforts to the actual closing of the loan agreement. This critical phase in lending encompasses several steps to ensure that both the borrower and lender align with the terms.
Loan proceeds refer to the net amount of money disbursed by a lender to a borrower after all the lender’s fees and other charges have been deducted. It is the actual amount received by the borrower for the intended purpose, such as purchasing real estate.
A mortgage banker originates, sells, and services mortgage loans, playing a crucial role in the real estate financing landscape by facilitating access to home loans and managing mortgage-backed securities.
A mortgage broker acts as an intermediary between borrowers and lenders. For a fee, typically paid by the lender, a mortgage broker connects borrowers to loan products without servicing the loans themselves.
Mortgage origination refers to the process by which a borrower applies for a new home loan, and a lender processes that loan. This process includes assessment, documentation, approval, and the issuance of the mortgage.
Originate refers to the process by which a lender creates and funds a loan. Loan origination encompasses assessing and approving an applicant's creditworthiness, as well as disbursing funds to initiate the lending transaction.
Origination, specifically loan origination, refers to the process in which a borrower applies for a new loan and a lender processes that application. This includes various steps such as evaluating the borrower's creditworthiness, completing the application, underwriting, and funding the loan.
The origination process encompasses all the steps required to fund a loan, including due diligence, financial planning, and necessary lender approvals, aiming at assessing and mitigating risk while optimizing financial outcomes.
Table funding refers to the practice of originating mortgage loans using a lender's internal capital until these loans are packaged together and sold in the secondary market. This process enables the lender to recoup capital, allowing continued lending activities.
Third-Party Mortgage Origination involves the process of using an intermediary, generally a mortgage broker, between the borrower and the lending institution. The intermediary performs all tasks and duties required to originate the loan according to the requirements of the lending institution.
