How to Get a Mortgage Loan Officer License: A Step-by-Step Guide

A mortgage loan officer license allows you to originate mortgages and advise clients on their home financing options Becoming a licensed loan officer provides a rewarding career path helping homebuyers achieve their dreams But how exactly do you get a mortgage loan officer license?

In this comprehensive guide, we’ll walk through the step-by-step process to become a licensed mortgage loan originator (MLO) in the United States

Overview of Mortgage Loan Officer Licensing

All U.S. states require mortgage loan officers to be licensed. This licensing is administered at the federal level through the Nationwide Multistate Licensing System and Registry (NMLS).

To obtain your mortgage loan officer license, you’ll need to:

• Register for an account on the NMLS portal
• Complete 20 hours of pre-licensing education
• Pass the National SAFE Mortgage Loan Originator Test
• Submit a license application through NMLS
• Pass a background check
• Get sponsored by a licensed mortgage company

Requirements vary slightly by state We’ll break down the specifics in each step below.

Step 1: Create Your NMLS Account

The first step is to create your account on the NMLS portal at NMLS Consumer Access. This will provide you access to submit applications, enroll in education courses, schedule exams, and more.

When you create your account, you’ll get a unique NMLS ID number. Make note of this – you’ll need it throughout the licensing process.

Step 2: Complete 20 Hours of Pre-Licensing Education

All states require loan officer license applicants to complete 20 hours of NMLS-approved pre-licensing education. These courses cover topics like:

• Federal mortgage regulations
• Ethics and consumer protection
• Mortgage loan products
• Fraud prevention

Many course providers offer online self-study options you can complete at your own pace. Costs range from $100 to $300 depending on the provider.

Step 3: Pass the SAFE Mortgage Loan Originator Test

After finishing your pre-licensing courses, you’ll need to pass the SAFE Mortgage Loan Originator Test. This exam consists of 125 multiple choice questions covering the mortgage topics from your pre-licensing education.

You’ll need to answer 75% of questions correctly to pass. The exam fee is $110 and testing is administered at approved sites. If you fail, you must wait 30 days before retesting.

Be sure to give yourself plenty of time to study mortgage concepts in-depth before sitting for the exam. Many providers also offer practice tests to get comfortable with the format.

Step 4: Submit Your License Application

With your 20 hours of education and exam complete, you’re ready to submit your license application through the NMLS portal. You’ll need to provide:

• Your NMLS ID
• Personal information like SSN, DOB, address
• Employment history
• Disclosure questions

You’ll also submit fingerprints and authorize a credit check as part of the application. Application fees are around $100 plus state-specific fees.

Step 5: Pass Your Background Check

Before approving your license application, the NMLS will run background and credit checks. As long as no significant issues surface, you’ll be on track for approval.

Make sure you are transparent about any prior offenses or credit problems on your application. Having past financial troubles doesn’t automatically disqualify you, but dishonesty will.

Step 6: Get Sponsored by a Mortgage Company

The final step is to get sponsored by a licensed mortgage company. They will submit your information to the NMLS to initiate sponsorship. Once approved, your license will be issued.

Mortgage lenders, banks, credit unions, and mortgage brokers can all potentially sponsor loan officers. Reach out to companies you’re interested in working with about sponsorship opportunities.

Mortgage brokers like Morty make it easy to get your license and begin originating loans.

Maintaining Your Loan Officer License

Getting your mortgage loan officer license is just the first step. You’ll also need to maintain it on an ongoing basis.

Requirements include:

• Completing at least 8 hours of NMLS-approved continuing education annually
• Keeping your NMLS record current
• Renewing your license by the state deadline each year
• Staying compliant with laws and regulations

The mortgage industry is complex, so expect to spend time each month staying current on policies and best practices. Joining industry associations and attending conferences can help greatly.

Is Being a Mortgage Loan Officer Right for You?

If you’re a good communicator, passionate about real estate, and interested in finance, a mortgage loan officer career can be highly rewarding. You get to educate homebuyers on their options while helping them achieve the dream of homeownership.

Just keep in mind that it also involves:

• Long and sometimes irregular hours
• Commission-based income that fluctuates
• Heavy sales and customer service
• Constant continuing education
• High-stress during application peaks

Make sure to thoroughly research what it takes to be an effective loan officer. If you have the drive and determination, it can lead to an unlimited income potential.

Next Steps to Getting Your Loan Officer License

We’ve outlined the core steps required to obtain your mortgage loan officer license. Here’s a quick recap:

• Register with the NMLS
• Complete 20 hours of pre-licensing education
• Pass the SAFE Mortgage Loan Originator Test
• Submit your license application with the NMLS
• Pass your background/credit checks
• Get sponsored by a mortgage lender or broker

Check the licensing requirements for your specific state for any additional steps needed.

The process takes time, commitment, and hard work. But once complete, you’ll have the opportunity to start a rewarding career as a licensed mortgage loan officer.