A mortgage loan originator is a professional who works with potential home buyers to help them secure the financing they need to purchase a home.
If you’re interested in a career as a mortgage loan originator, it’s important to know the key requirements for getting started. In this article, we’ll outline these requirements to help you on your path to becoming a mortgage loan originator.
Requirements:
- Obtain an NMLS number.
Register with the Nationwide Mortgage Licensing System and Registry (NMLS) to obtain a unique identifier. This identifier is required to apply for a mortgage loan originator license. It’s important to note that you must be at least 18 years of age.
- Complete prelicensure education.
To become a mortgage loan originator, you must complete pre-licensing education. This will typically involve a 20-hour course and must include 3 Hours of Federal Law, 3 Hours of Ethics, and 2 Hours of Nontraditional Loans.
You can satisfy this requirement through online training, live instructor webinars, or a classroom environment.
- Study for and pass the S.A.F.E. Act Exam.
You need to pass the required national exam. The first-time pass rate for the SAFE MLO Test is 57%. If you fail the first time, you must wait one month to retake it. MLOs who fail three times must wait six months to retake it. Diligently preparing for the exam is critical to passing.
- Submit the application via your NMLS Account.
First, you need to create your form MU-4 at the NMLS. Then you’ll need to pass a background check. This will typically involve a criminal history check and a credit check. You may be ineligible for a mortgage loan originator license if you have a criminal history or poor credit score.
- Research your state’s licensure requirements.
Each state has its licensing requirements for mortgage loan originators. You’ll need to meet any other state-specific requirements. You can check here.
Becoming a mortgage loan originator can be a rewarding career choice for those who enjoy working with people and are interested in finance.
With dedication and hard work, you can become a successful mortgage loan originator and help people achieve their dream of homeownership.