A Guide to Becoming and Working as a Mortgage Loan Originator

Are you interested in a career that allows you to help people realize their dream of homeownership? Do you want a job where no two days are the same and you get to analyze financial situations and come up with solutions? Then a career as a mortgage loan originator may be right for you! In this comprehensive guide, we will cover everything you need to know about becoming a mortgage loan originator, including job responsibilities, required skills and licensing, work environment, salary and job outlook, and tips for starting your career.

What is a Mortgage Loan Originator?

A mortgage loan originator often referred to as simply a loan originator or mortgage originator is a person who works directly with borrowers to help them go through the loan application process to purchase real estate. The primary role of a loan originator includes

• Meeting with potential borrowers to understand their financial situation and goals
• Collecting documentation and completing loan applications
• Analyzing financial details to determine the best loan options and programs for each customer
• Educating borrowers on various loan products available to them
• Communicating with processors, underwriters, and other professionals throughout the loan approval process
• Maintaining up-to-date knowledge of lending policies, loan products, and regulations

In essence, a mortgage loan originator serves as the main point of contact for borrowers to guide them through the complex process of obtaining home financing. They ensure borrowers understand the options available to them and submit complete, accurate applications to mortgage lenders.

Key Skills and Qualifications for Loan Originators

To be a successful mortgage loan originator, certain skills and qualifications are required or highly recommended:

• Strong sales, customer service, and communication abilities – This is a sales-driven role that requires excellent interpersonal skills to educate and persuade borrowers. You must be comfortable presenting mortgage products, answering questions, and handling objections.

• Solid math, analytical, and multitasking skills – You will need to analyze financial documents, explain interest rates and loan terms, and manage multiple client cases at once. Strong math, analytical, and organizational skills are essential.

• Goal-oriented and self-motivated – Much of the job involves working independently, being resourceful, and taking initiative. Successful originators are disciplined, resilient, and able to work with minimal supervision.

• Passion for the industry – A genuine interest in finance and real estate will help drive your success Understanding the mortgage process and staying updated on housing trends is advantageous

• High attention to detail – Documentation must be complete and accurate to successfully process loans. Strong organizational skills and attention to detail are imperative.

• Proficiency with computers and software – You will utilize various software programs, like mortgage origination systems and customer relationship management (CRM) platforms, on a daily basis. Comfort with learning new technology is important.

Licensing and Certification Requirements

To work as a mortgage loan originator, you must meet certain licensing requirements which vary by state. These usually include:

• Completing 20+ hours of NMLS-approved education courses on topics like ethics, lending standards, and regulations.

• Passing the National Mortgage Loan Originator Test administered through the Nationwide Mortgage Licensing System (NMLS).

• Submitting fingerprints and background check authorization to the NMLS.

• Meeting other state prerequisites for licensure, like a minimum residency period or credit score.

• Maintaining your state license through annual NMLS renewal, which entails completing 8-14 hours of continuing education.

Some states also require a sponsorship from an employing mortgage company to grant an initial license. Getting additional certifications, like a Certified Mortgage Planner (CMP) designation, can boost your expertise and credibility.

Typical Work Environment and Hours

Mortgage loan originators often work in the offices of banks, credit unions, mortgage companies, or brokerage firms. Your workday is typically spent at a desk making phone calls, filling out digital paperwork, and meeting with borrowers. Some travel may be required to meet clients at their home or other locations convenient for them.

Hours are generally full time and include some evenings and weekends to be accessible to homebuyers who have day jobs. 60+ hours per week is common when job pipelines are full. You may experience high stress during busy periods but enjoy slower paced weeks when application volume is lower.

Average Salary and Job Outlook for Mortgage Loan Originators

According to the U.S. Bureau of Labor Statistics, the average salary for a mortgage loan originator is $63,020 annually or $30.34 per hour. Those in the top 10th percentile earn $128,930 or more. Many loan originators also earn commission as a percentage of the mortgage volume they close.

Employment for loan originators is projected to grow 8 percent through 2030, faster than the average across all occupations. Rising home prices, higher mortgage rates, and increasing consumer interest in real estate investing will increase demand for mortgages and drive job growth for originators. The aging population and greater access to financing for self-employed and gig workers will also contribute to more mortgage activity.

Tips for Starting Your Career as a Loan Originator

If a mortgage origination career appeals to you, here are some pointers to launch your career:

• Complete the required licensing, education, and testing to become a state-licensed loan originator. Many large lenders provide training programs and cover exam costs.

• Look for a junior loan officer or processor position at a bank or mortgage company to get hands-on experience assisting senior originators and learning the ropes.

• Build a professional network by joining industry associations like the National Association of Mortgage Brokers or your local chapter. Attend conventions and workshops to expand your connections.

• Get familiar with commonly used software like Encompass, Byte, Optimal Blue, and Salesforce. Experience with these systems makes you more hireable.

• Develop strong sales abilities through public speaking classes, product training courses, or a sales role in another industry like retail or insurance.

• Continue growing your product knowledge and honing your customer service skills with ongoing education, certifications, and training. Strive to become an expert consultant that buyers can trust.

A career as a mortgage loan originator can be extremely rewarding if you enjoy sales, finance, real estate, and advising clients. It provides excellent earning potential along with flexibility and the chance to make a real difference in people’s lives. With hard work, persistence, and utilizing the guidance above, you can be well on your way to success in this exciting field.