If you aspire to be a mortgage loan originator (MLO), popularly called a mortgage loan officer, you must go through the stipulated hours of a mortgage licensing course to get a license. This post will go through how to get an MLO license and details of its most important component, the mortgage licensing course.
Before going on to the license post, it is necessary to understand the functioning of an MLO. The role of an MLO is to meet potential applicants for a mortgage loan, take all the financial documents required to sanction the loan, process the papers, and submit them to a lender for approval of the loan. An MLO per se has no loan sanctioning powers.
Before applying for a mortgage loan originator license, ensure that you are at least 18 years old and a citizen of the USA. Next, visit the portal of the National Mortgage Licensing System (NMLS) and create an account. A number will be generated that will be your identification throughout your career as an MLO.
Next, we come to the all-important part of going through the pre-licensing mortgage licensing course as mandated by the NMLS. Incidentally, it is the body that governs the mortgage industry in the country, laying down rules and regulations for the sector, issuing and renewing MLO licenses, and deciding the curriculum for the mortgage licensing course.
The pre-licensing course comprises two parts, the national and the start-specific sections. The national part is of 20 hours duration and covers the rules and regulations that are common to all states in the country. The state part is 2 hours and includes the laws governing the mortgage industry in a specific state. Hence the study materials for this part will not be the same for say, an aspiring MLO in Texas and Florida.
Before choosing a course, ensure that the provider is on the approved list of NMLS by visiting the NMLS portal. Otherwise, your 22 hours of studies will not be recognized as having completed the eligibility norm to appear for the licensing SAFE (Secure and Fair Environment) licensing exam.
Further, you can choose either an online mortgage licensing course or a classroom-based course. Online courses are typically preferred as they are flexible and convenient. You can download the study materials on any Internet-enabled device and study from anywhere at your convenience without upsetting your daily schedule. Among the leading providers of mortgage licensing courses in the country is RealEstateU.
After completing the course, submit your fingerprints for verification of past criminal records. A clean chit is necessary to apply for a license.
Schedule licensing SAFE test on the NMLS website, appear for the exam and clear it. Apply now for a license, uploading proof of completing the mortgage licensing course. Find a broker to sponsor you and inform the employment status to NMLS. You will now be issued an active MLO license.
