Become a licensed mortgage loan originator in Alabama by starting with the NMLS required pre-license training program. Take courses online. Finish in as few as 4 days. Thousands of students each year take courses with OnlineEd. Completing your pre-license education is the first step towards a new career!
OnlineEds base 20-hour MLO licensing program is delivered online so you can take the course from anywhere. This NMLS-approved, instructor-led course can be completed in as little as 4 days. Your learning material and exams are all delivered through your web browser. Each chapter in the course ends with an opportunity to post questions and get feedback from your instructor. Join an optional weekly review live webinar with your instructor and classmates. This will give you the chance to ask questions, have topics explained in more detail, and get insights from industry professionals.
Becoming a licensed mortgage loan officer can be a lucrative and rewarding career path. With the demand for mortgages continuing to grow, mortgage loan officers play a vital role in helping homebuyers navigate the mortgage process. If you’re interested in entering this field, this comprehensive guide will walk you through all the steps required to get your mortgage loan officer license.
What Does a Mortgage Loan Officer Do?
A mortgage loan officer is a licensed professional who guides borrowers through the mortgage application and approval process Their main responsibilities include
- Meeting with prospective homebuyers to understand their financial situation and goals
- Advising clients on different loan programs and options
- Collecting documentation and financial information from borrowers
- Submitting completed loan applications to mortgage lenders
- Negotiating interest rates and loan terms on the client’s behalf
- Providing status updates throughout the underwriting process
- Closing and funding mortgage loans
In short, mortgage loan officers act as intermediaries between borrowers and lenders. They help consumers get approved for home loans while also originating business for lending institutions. It’s a role that requires strong sales skills, financial acumen, and excellent communication abilities.
Mortgage Loan Officer License Requirements
The basic requirements to become a licensed mortgage loan officer include
- Being at least 18 years old
- Having a high school diploma or equivalent
- Completing mortgage loan officer education courses
- Passing the SAFE mortgage loan originator test
- Submitting licensing forms and fees to the Nationwide Multistate Licensing System (NMLS)
- Undergoing a criminal background check
- Meeting your state’s specific licensing criteria
However, the exact steps and additional requirements will vary by state. Let’s take a more in-depth look at what’s involved.
1. Check Your State Requirements
The first thing you need to do is check the licensing qualifications for your state. Each state regulates mortgage lending and licensing within its own jurisdiction. Some have stricter requirements than others.
Start by visiting the NMLS website and looking up the licensing checklist for your state. Here you can find details on:
- Specific education requirements
- The number of training hours needed
- Fees charged for licensing and sponsorship
- Other unique state prerequisites
It’s crucial that you understand your state’s criteria upfront so you can plan your timeline and prep accordingly.
2. Complete Mortgage Education Courses
At minimum, you’ll need to complete 20 hours of NMLS-approved pre-licensing education. These courses cover topics such as:
- Federal mortgage regulations
- Ethics and fraud prevention
- The lending process from start to finish
- Loan products, programs, and calculations
Some states may require additional educational hours beyond the NMLS minimum. You’ll need to pass a final exam at the end of your pre-licensing education.
You can take these courses in a classroom setting or online through an approved provider. Costs range from $200 to $300 on average.
3. Pass the SAFE Mortgage Loan Originator Test
The SAFE Mortgage Licensing Act of 2008 established nationwide standards for licensing mortgage loan originators. All states require you to pass the National SAFE test to demonstrate your knowledge of mortgage laws and regulations.
The test consists of 125 multiple choice questions and you must score at least 75% to pass. You can schedule the exam after completing your required pre-licensing education. The testing fee is $110.
If you fail, you must wait at least 30 days before retesting. Passing this exam is critical to advancing your application.
4. Submit Licensing Forms and Fees
After passing the SAFE exam, you can submit all required forms and documentation to the NMLS. This includes:
- The Uniform State License Application
- Your employment history
- Background check releases and fingerprints
- Any other supplements required by your state
You’ll also have to pay the licensing and application fees, which vary by state. The NMLS charges a $100 fee just to process your application.
Note that you have to apply for licenses in every state where you want to originate mortgages.
5. Get Your Coursework Approved
Before issuing your license, your state regulators will review your pre-licensing education certificates to make sure they align with state criteria.
This is why it’s so important to take NMLS-approved courses that meet your state’s required hours and topics. If anything is missing or deficient, you’ll have to take additional classes before moving forward.
6. Pass Your Background Checks
As part of the licensing process, you’ll undergo both state and federal criminal background checks. This comprehensive screening looks at:
- Credit and financial histories
- Past felony and misdemeanor convictions
- Public records
- Previous job performance
If any red flags or disqualifying events surface, your application will require further review or you may be denied licensing. It’s critical to have a clean background when seeking this position of consumer trust.
7. Get Your License Approved
Once you’ve satisfied all requirements, your state regulators will approve your mortgage loan originator license. This license will be active for a set period before requiring renewal.
You cannot originate mortgages until this approval comes through. The process takes 30-90 days on average after submitting all documentation.
8. Find a Sponsoring Employer
Mortgage loan officers must work under the supervision of a sponsoring mortgage lender or broker. Independent origination is not allowed.
Common sponsors include:
- Banks
- Credit unions
- Mortgage companies
- Mortgage brokerages
Your sponsor must have an active license in all states where you want to conduct business. They’ll submit sponsorship requests to the NMLS on your behalf.
9. Renew Your License
Mortgage loan officer licenses must be renewed annually in most states. You’ll need to:
- Pay renewal fees
- Complete 8 hours of NMLS-approved continuing education
- Submit any required license renewal forms
Failing to renew by the deadline means your license will lapse and you cannot legally originate mortgages until the license is reinstated.
How Long Does It Take to Get Licensed?
From start to finish, expect the mortgage loan officer licensing process to take between 45-90 days on average. However, it depends on these key factors:
- Your state’s requirements
- How long it takes you to complete required education
- Processing times for license applications
- How quickly you pass background checks
- Employer sponsorship timelines
Working diligently to satisfy prerequisites can help shorten the process. But leave plenty of cushion so you don’t miss deadlines or sacrifice educational comprehension.
Maintaining Your Mortgage License
Getting licensed is just the first step. You must also take actions to maintain your mortgage loan originator license over time:
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Adhere to continuing education requirements: Complete at least 8 hours of NMLS CE each year
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Follow all applicable laws and regulations: Stay up to date on both federal and state mortgage rules.
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Keep your NMLS record current: Update any changes to your name, sponsors, contact info, etc.
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Maintain sponsorship: You cannot originate mortgages as an independent agent.
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Renew on time annually: Don’t let your license lapse by missing renewal deadlines.
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Report any criminal offenses: Legal offenses must be reported per NMLS policy.
Failure to satisfy these maintenance obligations can jeopardize your licensing status and livelihood.
Is Becoming a Mortgage Loan Officer Worth It?
If you enjoy working with people, have an interest in finance, and want to build a scalable income, a mortgage loan officer career can be very rewarding. As homebuying demand continues rising, skilled loan officers will be in high demand.
Benefits of this career path include:
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Strong earning potential – Top mortgage loan officers can earn $100,000 or more per year. Compensation is commission-based.
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Flexible work arrangements – Many loan officers have options to work remotely or build their own schedules.
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Transferable skills – The relationship-building and analytical skills gained are transferable.
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Ability to help people – There is satisfaction in helping clients navigate a major financial move.
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Career growth opportunities – You can progress into managerial or executive roles over time.
Just know that succeeding requires drive, perseverance, and a willingness to hustle every day. If you have the motivation to put in the work, a mortgage loan officer license can equip you for an engaging and lucrative career.
Frequently Asked Questions (FAQ)
How much does it cost to get a mortgage loan officer license?
The costs vary by state, but you can expect to spend $500-$1,000 on education, exams, licensing fees, and sponsorship expenses.
What degree do you need to be a mortgage loan officer?
A college degree is not required. However, having a degree in finance, business, accounting or economics can be helpful.
Do mortgage loan officers make a lot
Create Your NMLS Account
You can get started with this step right now! By starting an NMLS account, you will be assigned an NMLS Unique Identifier (“NMLS ID”) which will be your license number for the rest of your mortgage career. You will need this number before you take any education or do business. Coordinate your account creation with your future employer.
What does NMLS stand for?
Nationwide Multistate Licensing System. The NMLS handles various mortgage license and registration functions through its website including licensing, tracking, testing, record keeping, and communication. The NMLS was initially called the Nationwide Mortgage Licensing System until its services were expanded to cover additional industries.