Mortgage loan originator- everything you need to know

Taking a loan to buy or refinance a home or using a mortgage loan originator to achieve this represents the biggest financial transaction a Kenyan will ever take part in. However, going through the processes of homeownership isn’t easy. We often have to look at the terms and conditions and learn about roles we might not otherwise be exposed to daily.

In this article, we will discuss mortgage loan originators in Kenya. You will understand who they are. You will also know them as a person and as an entity and the roles they play in the mortgage processes. 

Who is a mortgage loan originator?

A mortgage loan originator is a licensed person who guides a mortgage applicant through the mortgage processes and approval till it’s closing. A company can be a mortgage loan originator once they do mortgage origination.  

Moreso, mortgage loan originators can also work for a single company and be a mortgage originator. They are also seen as mortgage brokers that facilitate mortgage loan application and work with many companies. 

What you need to know about them

While you are trying to figure out how to go through a mortgage loan, you will need guidelines and directions. Definitely, you are going to go through searching and comparing the best loan, underwriting, and documentation alone. You will also need to come up with the best down payments and that you cannot calculate alone. In addition, you will talk about things like interest rate, valuation fee, stamp duty, legal fee, negotiation fee and commitment fee. It can all sound overwhelming. Once you understand a bit about the mortgage loan and the financial institution and loan officer you are going to be working with, things can seem easier.

8 Functions of a mortgage loan originator

The different functions of a mortgage loan originator are:

  1. Identifying home buyers through various means of communication and advertising
  2. Compiling and listing applicant information necessary for the mortgage loan
  3. Takes application and shows options of different lenders and applicants compared prices
  4. Guides an applicant throughout the loan processes
  5. Figures out the loan amount that suits an applicant’s objectives.
  6. Helps an applicant with documentation and paperwork
  7. Guides an applicant through underwriting by contacting a professional
  8. Takes the applicant through the loan to the closing stage

4 ways on how to become a mortgage loan originator

There are things you need first before you can become a mortgage loan originator. You need to be a detail-oriented person and have a good personal quality. Moreso, you are required to have an excellent credit history. Then the procedures to becoming a mortgage loan originator include:

  1. Possess a degree in finance, banking, economics or any other fields.
  2. Taking pre-licensure education courses
  3. Getting license through passing a test
  4. Submitting the data and information for approval by the NMLS

5 Requirements to becoming a mortgage loan originator in Kenya

The requirements needed to becoming a mortgage loan originator are:

  1. Must be 18years and above
  2. Have a national identity card to prove your identity
  3. Possess the national mortgage licensing system and registry number
  4. Willing and available to go through the required hours of education
  5. Pass the national examination

7 licensing requirements for the originator

When making financial decisions based on your mortgage application, it is reasonable you meet the right person. A mortgage loan originator who is licensed and can be trusted. Someone who knows how to handle the mortgage loan application and also knows what to do at the right time.

The licensing requirements are:

  1. Get licensing from your respective states in Kenya
  2. Register with the NMLS
  3. Apply in any CRBs to get your credit report certificate
  4. Supply all personal information
  5. Provide fingerprints for a criminal background check and clarifications
  6. Showcase a financial services employment history for a specific number of years required
  7. Attest to the completeness and full accuracy of the data and information provided.

2 mortgage loan originators in Kenya

The different mortgage loan originators are:

  1. Person: this can be the loan officer or mortgage broker representing an entity in Kenya
  2. Lending institution: they also know the lending institution giving the loan as mortgage loan originators. They direct individuals on how to start and go about the application.

How are mortgage loan originators paid or compensated?

Financial institutions like banks that employ MLOs are more likely to pay them basic salaries and benefits. Individuals, state-licensed mortgage brokerages, rely on commissions.

In addition, real estate agents allow their MLOs to negotiate their percentage fee commonly referred to as commission.


The role of a mortgage loan originator is to help get through the processes of your mortgage loan till the end. They also help get professionals for underwriting and help with documentation so you can accomplish your financial goals.

A mortgage loan originator can refer to both the person(loan officer or mortgage broker) handling the loan origination process and the institution offering the loan. They may work directly for the bank or the lender, or they may be a mortgage broker working for distinct entities.

Every Mortgage loan originator must be licensed. Individuals are licensed, and financial institutions also maintain their licenses. Conclusively, financial institutions like banks and non-banks offer mortgage loans and have mortgage loan originators that work on their behalf.

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Categories: Personal Loans