10 Steps How to Become a Mortgage Loan Officer

(doylc.com) How to Become a Mortgage Loan Officer - Loan officers help people obtain loans for homes and businesses, and help people buy homes and other types of real estate. All mortgage officers must be licensed by the federal and state governments, which requires additional training and testing. Applying your knowledge gained through certification and licensing, and gaining the necessary experience, you can become a mortgage loan officer.

• Complete Training And Gain Experience

1. Earn a high school diploma or GED. Earning a high school diploma or a GED is the first step to becoming a loan officer. If available, try taking math and accounting courses to lay the foundation for the tools you need to be an effective loan officer. Most four-year-old students need a high school diploma or GED to apply for an undergraduate position.

2. Apply for an internship or an assistant position. Applying for an internship or assistantship will give you experience and expose you to potential practical applications of your knowledge, although it is not required. Intern with a mortgage lender to gain hands-on experience with financial documents and day-to-day work.

3. Earn a bachelor's degree in a business related field. Since most loan officers generally analyze companies or individuals applying for a loan, you need to understand general business accounting such as: B. Understand how to read financial statements. Earning a degree in a related field such as business, finance, economics or accounting will give you the relevant information to work as a mortgage loan officer.

Check to see if your school offers special mortgage loan officer courses.

4. Obtain a Loan Officer Certification. While not required, loan officer certification can demonstrate dedication and expertise, which can ultimately increase your chances of getting hired. Many banking associations, such as the American Bankers Association or the Mortgage Bankers Association, and many schools and universities offer certification programs.

Apply for certification from banking associations through their online portals.

Contact the registrar at your local community college or university to see if they have certification courses available.

• Obtaining a Federal License

5. Check your state's licensing requirements. Each state has different requirements for licensing and certification. Checking which state requires which license or certification will give you a better understanding of what your next course of action should be. Consult the state loan officer licensing guides for easy access to your state's requirements.

You can easily find this information online at: http://mortgage.nationwidelicensingsystem.org/slr/Pages/default.aspx.

6. Complete your Nationwide Mortgage Licensing System coursework. All state-licensed mortgage lenders (MLOs) require a pre-licensed education called SAFE, which consists of 20 hours of coursework. The coursework can be broken down into 3 hours of federal laws and regulations, 3 hours of ethics, including fraud, 2 hours of training standards, and 12 hours of unspecified instruction on mortgage origination.

Contact the NMLS to find your state's course provider or courses offered online.

7. Pass all required NMLS tests. There are 1-2 parts of the exam that you have to pass after completing your training. The first is the national component, the second is the state. Some states only accept the national test and others require both national and state. Both components are chargeable before you are allowed to take them.

If you fail both tests, there is a waiting period that varies by state before you can retake the test. You can retake the test(s) as many times as you like, but each time the waiting time increases.

Consult the NMLS Test Guide to fully understand the test structure before taking both test components.

A minimum score of 75% is required to pass both tests, and both tests have a 30-day waiting period before you can retake them. However, you can repeat the tests as often as you like.

8. Get a criminal background check. To complete your criminal background check, you must pay the processing fee and schedule an appointment to have your fingerprints taken. A criminal background check will ensure your trustworthiness with your prospective employers and get you one step closer to becoming a loan officer.

You can pay your fee and arrange a fingerprint through NMLS online portals.

9. Have a credit report through NMLS. Have your credit scored by a third party or the NMLS. This rating is based on your history; They look for character quality that is reflected in financial decisions. Your credit report can be submitted through an online portal on the NMLS website.

Credit report fees are approximately $15.00.

10. Apply for a job as a mortgage loan officer. Once you have passed and met all the requirements, you can apply for mortgage loan officer positions. Research job opportunities online, write a resume and cover letter, request letters of recommendation from previous employers, and submit job applications.

Contact a former professor or former boss to look for potential job opportunities or resources.