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

Getting a mortgage loan originator (MLO) license is an important first step for anyone looking to start a career in the mortgage industry. As a licensed MLO, you will be qualified to work directly with borrowers to help them through the mortgage lending process. This can be a rewarding career path, but there are a few key steps you need to take to get your MLO license. In this comprehensive guide, we will walk through the entire process start to finish to help you understand exactly what it takes to become a licensed mortgage loan originator.

Step 1: Meet the Basic Requirements

Before you can apply for your MLO license, you need to make sure you meet some basic eligibility requirements mandated by the SAFE Act:

• Be at least 18 years old All mortgage loan originators must be legal adults over the age of 18

• Have no felony convictions Anyone with a felony conviction cannot work as a licensed MLO. Misdemeanors may need to be disclosed but do not necessarily disqualify you from licensure.

• Show financial responsibility. You will need to authorize a credit check and demonstrate you are financially responsible. Bankruptcies or tax liens may need to be explained but don’t necessarily bar you from getting licensed.

• Get fingerprinted. Fingerprints are required for an FBI criminal background check as part of the license application process.

• Have work authorization You must be legally eligible to work in the United States to hold an MLO license

As long as you meet these baseline requirements, you can move forward with the process of getting your MLO license.

Step 2: Complete Your Pre-Licensing Education

One of the most important parts of getting your MLO license is completing the required number of pre-licensing education hours. The Nationwide Multistate Licensing System (NMLS) requires 20 hours of NMLS-approved education, plus a few additional hours focused specifically on your state’s laws and regulations.

In Texas, for example, you would need to complete:

• 20 hours of NMLS-approved education
• 3 hours focused on Texas mortgage lending laws

This education ensures you understand important mortgage lending concepts and ethics. Most states require you complete this education before taking the licensing exam. Courses are available in classroom, online, and virtual classroom formats.

Step 3: Pass the Licensing Exam

After completing your pre-licensing education, the next step is to pass the SAFE MLO test, a national licensing exam administered by the NMLS. The exam has 125 multiple choice questions covering:

• Ethics
• Federal laws and regulations
• General mortgage knowledge
• Uniform State content

You will have 180 minutes to complete the exam. Passing requires answering at least 75 of the 125 questions correctly – a score of 60% or higher.

Exam prep courses and practice tests can help you get ready. You will register and pay the exam fee through the NMLS website before scheduling your exam date.

Step 4: Submit Your License Application

With your pre-licensing education and exam completed, you are ready to submit your application through the NMLS website. This involves:

• Completing the online MU4 form
• Paying the application fee
• Submitting fingerprints for an FBI background check
• Authorizing a credit report
• Uploading any required documents

NMLS will process your application and coordinate with Texas regulators to issue your license if approved. Processing times vary but often take 4-6 weeks. You cannot originate mortgages until you have an approved active license.

Step 5: Maintain Your License

Getting your MLO license is just the first step – you must also take care to maintain it properly. This involves:

• Renewing your license annually. Licenses expire each year and must be renewed by December 31.

• Completing continuing education. You will need at least 8 hours of NMLS-approved continuing education each year to keep your knowledge current.

• Keeping your information updated. Report any changes in your name, address, employment, or background details to NMLS within 30 days.

• Paying renewal fees. Expect annual fees of $100-$150 to NMLS, plus any state-specific renewal fees.

Meeting these responsibilities will ensure your license remains in good standing year after year.

Finding a Mortgage Company to Work For

Once you have your MLO license approved, you will need to find a mortgage company to sponsor your license. Each state has different policies on whether you can originate mortgages as an independent agent or must work under a licensed mortgage company.

Look for openings with local mortgage lenders, banks, or credit unions. You may start out as a loan officer assistant or junior loan officer before working your way up. Focus on finding a company aligned with your experience, interests, and goals in the mortgage industry.

Is Becoming an MLO Right for You?

If you’re considering getting your mortgage loan originator license, make sure the career path is a good fit:

Pros

• Lucrative earning potential
• Flexible work arrangements possible
• Opportunity to help consumers
• Can be a good sales role

Cons

• High pressure sales environment
• Lots of regulations to follow
• Can be stressful
• Requires sales skills

Take some time to think through your career options before jumping in. While an MLO license opens up job opportunities, make sure working in mortgage lending aligns with your skills, interests, and professional goals.

We Can Help You Get Your Mortgage Loan Originator License

The loan originator licensing process can seem complicated, but our team is here to help. We offer high-quality pre-licensing and exam prep courses designed specifically for Texas MLO licensing requirements. Our experienced instructors will guide you through every step from education to test prep.

Contact us today to learn more or register for your pre-licensing courses. We look forward to helping you start your new mortgage industry career!