What is the difference between a mortgage lender and a mortgage loan officer?
A mortgage lender is the financial institution that makes direct loans; a mortgage loan officer is the individual who works with borrowers on the lender's behalf. The officer takes the application, gathers and verifies financial information, explains loan types and terms, and passes the file to underwriting, which decides whether to approve the loan. Federal law requires mortgage loan officers to be licensed or registered under the SAFE Act, while the lender itself holds a company license from the state.
A mortgage lender is a company; a mortgage loan originator is an individual. In California, a residential lender operates under a company license, either the California Financing Law or the California Residential Mortgage Lending Act, with net worth and surety bond requirements carried at the company level. An MLO is the individual who takes a borrower's application or offers or negotiates loan terms; each MLO must be licensed, employed, and sponsored by a licensed company, and the employer's surety bond covers them.
Sources: California DRE: MLO License Endorsement Information; California DRE: How to Obtain a Mortgage Loan Originator License (RE 19).