How to Become a Mortgage Loan Officer

How to Become a Mortgage Loan Officer Discover the secret to becoming a mortgage loan officer. If you have a dream of being a loan lender but you don’t know the right way to go, for you to achieve your goal, please read this article to the end. In this write-up, you will find important info on how to successfully become a mortgage loan officer even without experience.

MLO is short for the mortgage loan officer. Their duty is to assist people who wish to purchase a home choose the best financial options. This can be an ideal career, especially for those interested in real estate and those who like working with a variety of people.

What is a Mortgage Loan Officer?

A mortgage loan officer is a professional in finance who helps clients determine whether they qualify for home loans. Loan officers also provide information on the types of loans available and interest rates. However, people who mostly work in mortgage companies and banks, provide guidance and advice regarding home loans.

Mortgage Loan Officer Roles and Responsibilities

The primary duties of a mortgage loan officer include:

Identify future homebuyers through advertising, seminars, and other channels.
Maintain detailed and factually correct documents on mortgage transactions.
Coordinate with other real estate professionals, like home appraisers and underwriters.
Collect all borrowers’ financial information, such as taxes and debt, for the loan.
Present clients with loan options that are a good fit for them.
Comply with confidentiality policies and privacy laws throughout the mortgage application process.

These are the responsibilities of my mortgage loan officer.

Quick Steps To Become A Mortgage Loan Officer(MLO)

Here are the steps you can follow to be a loan officer:

Step 1: Meet the basic requirements.

To become a mortgage loan officer, you need to

be at least 18 years old.
have a high school diploma or GED.

While in school, try to take math-and finance-based classes to start gaining some knowledge and skills needed to be an MLO.

Step 2: Complete pre-licensure courses

The National Mortgage Licensing Service (NMLS) requires mortgage loan officers(MLOs) to take certain pre-licensure courses to ensure they thoroughly understand what this career entails. The courses include

Three hours: Ethics, including sections about fraud, fair lending, and consumer protection issues.
Training related to lending standards in the non-traditional mortgage product market (two hours)
An additional instruction on mortgage origination (12 hours)
Take courses on mortgage lending laws in your state and other state-specific topics. Learn more about the state-by-state education requirements by visiting the NMLS website.

Step 3: Check your state’s licensure requirements

After completing your pre-licensure courses, your next step toward becoming an MLO had to do with getting a valid mortgage origination license. State agencies provide these licenses, and each state has its own guidelines for obtaining MLO licensure. Moreover, you also need to pay fees to obtain MLO licensure, which varies by state.

Step 4: Pass the SAFE MLO Examination.

To obtain your mortgage loan officer licence, you must also pass the SAFE (which stands for the Secure and Fair Enforcement Act) MLO test with a minimum score of 75%. The exam is what measures your knowledge of both federal and state mortgage lending laws. You may retake the test, although there is a 30-day waiting period for retakes. Thus, if you take the SAFE MLO test three times, you must wait 180 days to retake it.

However, the Safe Act and the NMLS require mortgage loan officers to do the following:

Register with the NMLS
Have authorization for a credit report (you must have a strong credit history).
Provide fingerprints for a criminal background check.
Verify the accuracy and completeness of the information they provide.
Disclose any charges from financial regulatory agencies.
Have 10 years’ worth of financial services employment history.
Have several types of identification information.

Step 5: Comply with NMLS requirements.

Here are the NMLS requirements you need to become a mortgage originator:

Your employer sponsors and supervises your MLO duties.
Your state’s regulatory body also must approve your sponsorships.
Have an NMLS unique identifier. These unique identifiers help track companies and licensees and are listed on all advertisements for mortgage origination services.

Step 6: Maintain active licensure

After you obtain your license, you need to keep it active by meeting certain requirements, just like keeping your information up to date. For instance, if you start working for a new company, you must notify the NMLS of this change to update your unique identifier. You can visit the NMLS official website to learn more about deadlines, fees, checklists, licence renewal, and updating your mortgage loan officer information.

Step 7: Continue your Education

Mortgage loan officers must finish 8 hours of NMLS-approved continuing coursework each year to be eligible for licence renewal. This education must include:

3 hours of regulations and federal law
2 hours of ethics coursework on fraud, fair lending, and consumer protection.
2 hours of training on lending standards for the non-traditional mortgage product market.
Then 1 hour on mortgage origination services, which you can find by taking a state-specific course.

Step 8: Acquire Work Experience

After getting all the required education and licensure requirements, get experience working as a mortgage loan officer. To do this, you can work independently, although you may want to seek employment at an established mortgage lending company, bank, or credit union for your first MLO job.

What is the Salary for a Mortgage Loan Officer?

The mortgage loan originator makes around $162,095 per year. The average commission for this role is around $27,600 per year.

A loan officer is around $169,030 per year. while the average commission for this role is around $24,000 per year.

What are the skills of a Mortgage Loan Officer?

To be a successful MLO, consider developing these skills:

Possess interpersonal skills
Be organized:
Always pay attention to detail.
Financial skills:

What Are the Requirements to be a Loan Officer?

The requirements to be a loan officer are education, training, and licensure. A minimum of a high school diploma is required, although some employers require a bachelor’s degree in finance or a related field.