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Mortgage Brokers & Lenders

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Vince Le
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Nick Conley
Lender
  • Lender
  • Dallas, TX
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Nick Conley
Lender
  • Lender
  • Dallas, TX
Replied Jan 15 2024, 08:40

Hi Vince,

I think we would need more information to help answer your question. If the MLO is brokering the loan, the broker in many cases is going to process the file. As the MLO we upload items directly to the broker. Typically the broker and the MLOs employer have an agreement how this is all handled internally.

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Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
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Erik Estrada
Lender
#3 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
Replied Jan 17 2024, 15:42
Quote from @Vince Le:

Why do I see some independent mortgage loan officers submit borrower's application directly to lender without going thru their employer/broker's loan processing?

Will the MLO get the full compensation for themself by doing so, and is it illegal?


 Depends on how big the brokerage is. Many smaller independent brokers do not have a loan processor so they process the loan themselves. It can also be that their client does not want to pay a processing fee, so the MLO is forced to do it themselves. 

And there are those that want to be on top of their file. Many independent processors and lender processor's are overworked with files. 

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