NMLS loan originators hold a license by the National Mortgage Licensing System to originate mortgage loans in participating state agencies, including Puerto Rico, the U.S. Virgin Islands, Guam and the District of Columbia, explains the NMLS Resource Center. Mortgage companies often use NMLS to manage state mortgage licensing types.
Loan originators are institutions or individuals who work with borrowers to complete a mortgage transaction, states Investopedia. Mortgage brokers, bankers or lenders act as originators but do not decide whether borrowers qualify for financing. Mortgage underwriters determine whether borrowers qualify for financing. Mortgage loan originators licensed by the NMLS work for large banks or smaller firms, or work independently as mortgage brokers.