What is the difference between a loan officer and a loan processor?
A loan officer takes residential mortgage loan applications and offers or negotiates loan terms, which requires a state license or federal registration. A loan processor performs clerical and support duties at the direction of a licensed originator, such as collecting information, ordering appraisals and title work, and preparing files for underwriting, and does not need a license while supervised. The boundary matters: an independent-contractor processor, or anyone who negotiates terms, must be state-licensed.
A loan officer, licensed as a mortgage loan originator, takes residential mortgage loan applications and offers or negotiates loan terms for compensation. A loan processor handles the file behind the scenes instead of originating the loan. In California, an employee who performs purely administrative or clerical tasks is excluded from the MLO definition, but an independent-contractor loan processor or underwriter must hold a real estate license with an MLO endorsement.
Sources: California DRE: MLO License Endorsement Information; California DRE: How to Obtain a Mortgage Loan Originator License (RE 19).
A loan officer (the loan originator) solicits mortgage loans, accepts applications, and negotiates loan terms for compensation; a loan processor handles the loan file after the application is taken. Florida law requires an in-house loan processor to be an employee of a single mortgage broker or lender and to work under the supervision of a licensed loan originator. A contract loan processor who is a licensed loan originator may serve multiple brokers or lenders by filing a declaration of intent (Form OFR-494-13) with the office.
Sources: Fla. Stat. 494.00312: Loan originator license; Fla. Stat. 494.00313: Loan originator license renewal.