Wondering how to become a Mortgage Loan Officer? If so, you don’t have to worry anymore because we will discuss it. It is an outstanding career if you are interested in fields like real estate. The profession helps people find and purchase the right home of their dreams. Certainly, an MLO is the primary person between a borrower and a lender.
To become a Mortgage Loan officer, the first step is to get a high school degree in Finance or Business. Then, you need to gain experience working in the related fields. After that, you’ll need 20 hours of pre-licensing coursework, pass the SAFE Mortgage Loan Originator Test, and register with the Nationwide Multistate Licensing System (NMLS). All these requirements vary from state to state.
Let’s discuss in detail how you can become a Mortgage Loan Officer.
Who is a Mortgage Loan Officer?
A Mortgage Loan Officer (MLO) is a person who helps and allows people or families to borrow money as easily as possible when purchasing real estate. They collaborate with mortgage bankers, credit unions, and brokers. Their job is to review client credits and determine the total amount that the individual is able to borrow, depending on the eligibility criteria.
MLOs are great when someone wants to discuss their property loan terms. In this way, they help to match the financial profile of the existing home buyer with a mortgage at the appropriate rates. Let’s say, for instance, you want to start your career as a Mortgage Loan Officer and succeed. You must know complex loan policies or regulations, help others obtain a loan, and pass the national exam to get a license.
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How To Become a Mortgage Loan Officer
Following are the steps that you must follow to become a MLO.
1. Fulfill The Basic Requirements
You should be 18 and hold a high school diploma or degree. Furthermore, choose finance, business, or math-related classes in high school to gain the initial knowledge and skills required to become an MLO in the future.
2. Do Pre-License Course
Mortgage Loan Officemortgage loan officers need pre-licensure to learn how the career works. It is the primary requirement of the National Mortgage Licensing Service (NMLS). The courses normally last 20 hours and cover the following themes.
- Ethics course with a duration of 3 hours.
- Federal law and regulation course of 3 hours.
- The biggest course of extra instructions on mortgage origination. Its duration is 12 hours.
- Training about lending caliber in the non-traditional mortgage section. Its duration is 2 hours.
You can also research state-to-state education requirements through the NMLS official website.
3. Get a Valid Mortgage Origination License
The next step is to get a mortgage origination license. Different state agencies have different license requirements and policies, so each state has its own. To get a valid origination license, you must also pay some fees (which vary according to the state).
4. Succeed in The Safe MLO Test
Passing the SAFE (Secure and Fair Enforcement Act) MLO Test is essential to get your MLO license. Moreover, you need to pass this test with at least a 75% score. The exam aims to measure your knowledge of state and federal mortgage laws. If you fail it the first time, then you can retake the exam after a waiting time of 30 days.
The Safe and NMLS Act is crucial because it registers the MLO with the NMLS, gives authorization for a credit report, allows you to access fingerprints for background checks, verifies any useful information, determines charges from financial regulatory authorities, and much more.
5. Keep Your License Active
Getting just the license for a Mortgage Loan Officer is not the end of the procedure. You need to maintain an active licensure. By meeting certain requirements, you can keep your license active. For instance, if you start working for a new agency, then you must notify NMLS about the change so that it can update your unique identifier. This procedure also has a fee, deadline, and checklist, which you can see on the NMLS website.
6. Work as a MLO
After completing all the steps and your education, you should get experience by working as a Mortgage Loan Officer. You can work at a financial institution such as a mortgage bank, mortgage lending company, or credit union to get experience.
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Final Words
You can help people choose the best financial solution while buying a house by becoming a Mortgage Loan Officer. There are six steps that you should follow to become a successful MLO. After becoming an MLO, you must also maintain an active license to be successful in the field.