As a mortgage loan originator (MLO), your job is to educate and guide borrowers through the loan process from application to closing. A loan officer career is a fulfilling way to earn a living and help others at the same time.
An MLO spends much of his/her time in the field, communicating by email and phone with the office and clients. A typical workweek may be more than 40 hours and include evenings and/or weekends, especially when interest rates are low and the housing market is brisk.
As you get started in your mortgage broker career, your day-to-day responsibilities might include the following:
A mortgage loan originator, also known as a mortgage loan officer or MLO, plays a critical role in the home buying process. As a mortgage loan originator, you help potential homebuyers navigate the complex world of mortgage lending to find the loan product that best fits their needs and financial situation. It’s a people-oriented job that requires technical know-how, exemplary communication skills, and the ability to thrive in a fast-paced environment.
If you’re considering a career as a mortgage loan originator, here’s what you need to know about what the job entails on a day-to-day basis, the qualifications needed, and how to get started in this rewarding field.
A Day in the Life of a Mortgage Loan Originator
As a mortgage loan originator, no two days are ever quite the same. Your core responsibilities include
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Meeting with prospective homebuyers to discuss their financing goals and needs. This includes first-time homebuyers, people looking to refinance, and those purchasing a new home.
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Collecting documentation and financial information from clients, including tax returns, pay stubs, and bank statements.
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Analyzing clients’ financial profiles to determine the types of mortgage products for which they’ll qualify. This includes considering factors like debt-to-income ratios, credit scores, down payment amount, and more.
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Educating clients on various mortgage products and programs, explaining options like fixed-rate versus adjustable-rate mortgages FHA loans VA loans, USDA loans, jumbo loans, and more. You’ll outline the pros, cons, and qualifications for each.
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Advising clients on programs and resources available for down payment assistance.
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Prequalifying buyers for mortgages and providing official mortgage quotes.
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Gathering documentation, filling out application forms, and submitting completed mortgage applications on behalf of clients.
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Acting as the key contact for clients throughout the lending process, answering questions and managing expectations.
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Collaborating with processors, underwriters, and other mortgage professionals to move loans through to closing.
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Representing your employing bank or mortgage company throughout the client relationship.
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Participating in sales calls and networking events to generate new business.
As you gain experience, you may take on mentoring and management responsibilities training new mortgage loan originators as well.
Skills and Qualifications for Mortgage Loan Originators
To succeed as a mortgage loan originator, certain skills and qualifications are required:
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Sales, communication, and interpersonal abilities: You’ll be interfacing with clients throughout the lending process, requiring the ability to build rapport and explain mortgage options clearly. Strong verbal and written communication skills are essential.
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Industry knowledge: You must keep current on mortgage products, rates, qualification guidelines, and regulatory compliance issues. Ongoing education is a must.
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Financial analysis skills: Analyzing financial documents, credit reports, assets/liabilities, etc. is a core part of prequalifying borrowers and submitting fully documented applications.
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Multi-tasking and organization: Juggling multiple client cases at once is common. You must be able to stay organized and meet deadlines.
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Motivation and work ethic: Mortgage loan origination includes sales goals and incentive compensation. To earn high wages, you need strong motivation and a willingness to work hard.
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Math and analytical aptitude: You’ll need to analyze numbers, percentages, and interest rates all day long. Solid math skills are critical.
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Tech savviness: Utilizing mortgage origination software and digital loan files is an integral part of the job. Comfort with learning new technology is important.
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High school diploma or bachelor’s degree: Many employers require a college degree. Coursework related to finance, marketing, business, or economics is helpful.
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Mortgage license: Registration with the Nationwide Mortgage Licensing System and Registry (NMLS) is mandatory. Certain continuing education requirements apply as well.
Getting Started as a Mortgage Loan Originator
If becoming a mortgage loan originator appeals to you, follow these tips to get started:
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Determine if you need to complete prerequisite coursework or obtain a certain college degree based on employers’ requirements in your location.
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Enroll in mortgage loan origination courses and study materials to prepare for the national and state exams.
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Sit for your national and state-level mortgage loan originator tests.
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Submit license application forms and complete background checks required through the NMLS registry system.
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Look for open mortgage loan originator roles at banks, credit unions, and mortgage companies. Consider starting out at a smaller company to gain experience.
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Highlight your sales abilities, financial aptitude, and interest in real estate on your resume.
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Be prepared to start in a junior mortgage originator role to learn under the wing of a senior MLO. A period of on-the-job training is common.
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Immerse yourself in the industry by reading mortgage-focused publications and joining professional organizations. Attend conferences and networking events.
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Continuously build your mortgage, real estate, and finance knowledge base. Ongoing learning is critical for staying current and building your skillset.
Being a mortgage loan originator can be an immensely rewarding career. You get to help people realize their homeownership dreams while enjoying the freedom and income potential of a sales-driven job. If you have the motivation to build long-term client relationships, a passion for numbers, and a desire to succeed in a fast-paced industry, transitioning into mortgage origination could be an excellent move.
Is an mlo career right for you?
As a mortgage loan originator (MLO), your job is to educate and guide borrowers through the loan process from application to closing. A loan officer career is a fulfilling way to earn a living and help others at the same time.
An MLO spends much of his/her time in the field, communicating by email and phone with the office and clients. A typical workweek may be more than 40 hours and include evenings and/or weekends, especially when interest rates are low and the housing market is brisk.
As you get started in your mortgage broker career, your day-to-day responsibilities might include the following:
- Interview loan applicants and explain loan terms and conditions
- Analyze the applicant’s financial status, including verifying credit history, income, and the property to determine whether the applicant has the ability to repay the loan
- Order appraisals, credit reports, and reference checks
- Prepare loan documentation in accordance with financial institution standards
- Provide status reports to bank management on residential loan production
- Coordinate loan closings with buyers, sellers, real estate agents, and escrow officers
- Resolve customer complaints
In addition to your desire to become an MLO, there are certain characteristics and skills you’ll want to be sure you have in your toolbox to help you be as successful as you can be.
- A love of working with people
- Sales ability
- Excellent communication skills
- Strong analytical skills
- Ability to problem solve
- Excellent attention to detail
- Highly motivated and self-driven
Once you have obtained your MLO license, there are various avenues you can pursue in an effort to get started in your new career.
- Check for job opportunities at one of the many bank industry websites for available positions
- Attend job fairs sponsored by state mortgage bankers’ associations to get to know potential employers
- Contact employers in your area directly for informational interviews
- Ask for referrals from friends or associates
Demand for commissioned mortgage loan officers will grow about as fast as employment opportunities in general, according to the Bureau of Labor Statistics. The mortgage market is very sensitive to interest rates, which means job opportunities may decline during periods when mortgage interest rates are rising.
As you get started in your mortgage broker career, your day-to-day responsibilities might include the following:
- Must be 18 years or older and demonstrate financial responsibility
- Have a bachelor’s degree. Some experience in finance and sales is helpful to getting hired, but is not required
- Take 20 hours of prelicensure education courses approved by the Nationwide Mortgage Licensing System (NMLS). Certain states also require that MLOs complete state-specific education
- Pass a written exam developed and administered by the NMLS
- Not have been convicted of, or pled guilty or no contest to, a felony within the seven years preceding the date of the license application
- Not have been convicted of, or pled guilty or no contest to, a felony involving fraud, dishonesty, breach of trust, or money laundering, at any time preceding license application
- Not have a record of loan originator license revocation in another state
- Provide fingerprints to the NMLS for an FBI criminal background check and authorize the NMLS to obtain a copy of their credit report
- A MLO working for a federally insured depository (such as a bank or credit union) must be registered with NMLS. All other mortgage loan officers must be state licensed.
Financial institutions normally provide extensive on-the-job training to loan originator employees.
Federal law requires new mortgage loan officers to complete at least 20 hours of education approved by the NMLS, including instruction on federal mortgage-related laws, ethics (including fraud, consumer protection, and fair lending), and lending standards for nontraditional mortgage products.
Interactive • Engaging • Flexible
OnCourse Learning provides NMLS-approved courses in a variety of formats – recorded and live webinars, online and video CE.
These courses are for individuals who are looking to become licensed as a mortgage broker, preparing to take the national exam, need to satisfy annual continuing education requirements or looking to enhance their skills through professional development.
Courses for continuing education fulfills the national education requirements and all state-specific requirements.
What does a Loan Officer Loan Originator Do? (Loan Officer Day In The Life)
FAQ
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