Being a mortgage loan officer is a fantastic job that comes with flexibility and plenty of growth potential. Whether you’re looking for a new full-time job or you want something part-time for extra income, it’s worth exploring how to become a mortgage loan officer!
What Is a Mortgage Loan Officer?
A loan officer’s job is dedicated to helping borrowers navigate the loan application process. They can help determine if a person will qualify for underwriting, heavily based on their credit. If they do, the loan officer recommends the borrower for approval, but their job doesn’t stop there. They have extensive knowledge about lending products, banking regulations, and more so they can assist borrowers in a variety of situations. Loan officers represent banks, credit unions, and other types of lending institutions.
Qualifications for Mortgage Loan Officers
To excel in this line of work, you want to make sure you get training and licensed the right way. While there are national requirements everyone must meet, each state also has its own qualifications for mortgage loan officers. With that in mind, here is an overview of the national requirements you must meet to become a mortgage loan officer.
The first qualification you must meet to become a mortgage loan officer is being an adult who is at least 18 years old. As long as you’re of age, you’ll have three things to do:
- Register with the Nationwide Multistate Licensing System & Registry (NMLS)
- Complete 20 hours or more of pre-licensure education courses
- Pass the NMLS mortgage license exam
The length of time this process takes from start to finish varies depending on how much time you have to devote to becoming a loan officer. Many people get licensed and have their loan officer job up and running in just 45 days!
Registering with the NMLS
Registering with the NMLS is crucial to remain compliant with the Consumer Financial Protection Bureau. You will also need to undergo a credit and FBI criminal background check. While some people seem to think they need a certain credit score to become a mortgage loan officer, that really is not the case. There is no official credit score minimum in national qualifications or any state qualifications.
Pre-Licensure Education
Not only does every mortgage loan officer need to complete 20 hours of coursework, but there are specific topics your courses must cover, including:
- 2 hours on lending standards for nontraditional mortgage products
- 3 hours on federal laws and regulations
- 3 hours on ethics including good lending practices, fraud, and consumer protection
The remaining 12 hours can be on a variety of topics related to mortgage origination. However, again, states have their own qualifications for mortgage loan officer education. So your state may have specific requirements for those last 12 hours on your journey of how to become a mortgage loan officer.
Passing Your NMLS Exam
As you’d suspect, the exam covers a variety of mortgage-related topics to ensure that you are as knowledgeable as possible before becoming a mortgage loan officer. You’ll need to score at least 75% to pass the test. If you’re unable to pass on the first try, you’ll need to wait at least 30 days before you can retake it. If you take the test three times and still have not passed, you’ll need to wait 180 days before retrying.
Get Mortgage Loan Training with Stacey Sandlin
Are you ready to embark on your journey to become a mortgage loan officer? If you’re looking for additional mortgage training from an experienced loan officer, sign up for a course with Mortgage Loan Training. Stacey Sandlin gives you the tools you need to succeed!
