What is the difference between a mortgage lender and a loan officer?
A mortgage lender is the financial institution that makes direct loans, while a loan officer is an individual who works for one institution and offers only that employer's loan products. The loan officer gathers and verifies the applicant's financial information and submits the file, but the approval decision is made by the institution's underwriting department. A mortgage broker differs from both by working independently with multiple lenders rather than a single employer.
A mortgage lender is the company that funds the loan, while a loan officer is the licensed individual who takes your application and negotiates the terms. California law defines a mortgage loan originator (MLO) as an individual who, for compensation, takes a residential mortgage loan application or offers or negotiates loan terms. Companies that make or service residential loans hold their own licenses, for example under the California Residential Mortgage Lending Act (CRMLA), and every employee who originates loans must be a licensed MLO.
Sources: California DRE: MLO License Endorsement Information; California DRE: How to Obtain a Mortgage Loan Originator License (RE 19).