Considering a career in the California mortgage loan industry? Read this!
If you are looking for a promising professional path that will allow you to progress and grow without restrictions, then working in the mortgage and lending industry might just be for you.
Did you know that mortgage loan officers in California are highly sought after by financial institutions like banks, credit companies, lenders, and other mortgage providers?
Mortgage loan officers and originators are in high demand, thanks to California’s steady housing market and job outlook.
Loan officers work with individuals and help them achieve their home ownership goals by securing a mortgage.
If you are someone who likes to interact with people and help them, this could be a fulfilling career path for you.
As per job sites and industry estimates, California loan officers make around $150K in annual salary. Plus, you can enjoy additional performance-related bonuses and perks too.
Becoming a mortgage loan officer in California means you can enjoy a limitless earning potential while experiencing a flexible, work-life balance thanks to remote job opportunities.
All you need to join this promising and flourishing career is a state-approved license and you will be set to help clients navigate through the process of home ownership.
If you are already thinking about how do i become a loan officer in California, then we have put together this in-depth guide which covers all the steps in a structured, easy-to-understand way.
While starting a new career might seem like a daunting task, by careful planning and a step-by-step approach, you can make it an achievable goal.
This article will cover the prerequisites of starting a career as a mortgage loan originator or officer and you will learn about the educational and licensing requirements for the job.
We will also cover the key aspects of this job profile including the role and responsibilities of working as a loan officer.
Plus, you will also learn about practical tips and techniques to stand out and build a strong career as a loan officer.
The job profile of a Mortgage loan officer
You probably are curious to learn more about what the job role of a mortgage loan officer entails and what exactly are you expected to do in this role.
Let’s start with the basics of when a mortgage loan officer or originator comes into the picture and how they help their clients.
Whenever an individual or a person wants to buy a new home or refinance their existing one, they seek the guidance and expertise of a mortgage loan officer.
Loan officers work with individuals throughout the various stages of the loan process - right from initial profiling and application to loan closing and beyond.
Since you will be working directly with potential and existing clients, you are expected to be familiar and thorough with the different types of loan products, services, plans, and other terms associated with a mortgage.
As a mortgage loan officer, your key job role is to assist your clients and help them choose the most suitable mortgage product to meet their homeownership goals.
On top of having strong financial and accounting acumen, you must also be adept at understanding the needs, requirements, and goals of your clients.
Successful loan officers and originators are good at communicating, both verbal and written and have strong interpersonal and people skills.
By asking relevant questions, listening attentively, and conducting in-depth consultations, loan officers can gauge the financial health and creditworthiness of an individual.
With insights into an individual’s income, financial status, requirements, preferences, and expectations, mortgage loan originators are responsible for delivering personalized, tailored services to their clients.
Duties of a Mortgage Loan Officer
Working as a mortgage loan officer (MLO) means you will be juggling multiple tasks and completing various duties at work.
Loan officers are employed by lenders or loan originators who want to find suitable buyers or borrowers.
As a mortgage loan officer, you will be working on behalf of lenders and borrowers and act as an intermediary between them.
The role will involve a mix of administrative, collaborative, customer services, operational, accounting, and finance-related tasks. Let’s dive deeper into some of the daily to-dos below.
- Meet, interact, and interview potential clients to understand the needs and expectations of homebuyers.
- Collect all the important documents and paperwork required for submitting the loan application to the lenders.
- Prepare the mortgage loan application by completing the required information in a proper and efficient manner.
- Educate clients about the different types of mortgage loans, interest rates, payment terms, and any other important information related to the transaction.
- Answer any client queries and resolve any potential doubts throughout the various stages of getting a mortgage.
- Help in filling out the application to help your clients take the guesswork from the pre-approval process.
- Explain the various loan down payment options, recurring payment terms, and other terms and conditions to your clients.
- Assist your clients by providing them with the exact solutions they require to meet their homeownership budget, goals, and dreams.
- Work with underwriters, loan originators, mortgage brokers, and other industry professionals to facilitate the completion of the application.
- Provide timely, important, and relevant updates about the status of the loan application and service requests to your clients.
- Assist your clients post the mortgage loan is secured and the application is closed by conducting check-ins related to payment and refinancing.
- Generate a pipeline of leads, inquiries, and potential customers on behalf of your employer or for your own firm.
- Build and establish your presence in the local community, area, locality, and state as the go-to expert for mortgage loan services and expertise.
Note that the above list is not exhaustive by any means and is a general overview of what a day in the life of a mortgage loan originator looks like.
By understanding the key job duties and responsibilities, it will become easier for you to plan and prepare for what this role entails.
Be it a first-time homebuyer or a more experienced one, as a mortgage loan officer, you will serve as their go-to guide for everything related to securing financing.
Now that we have covered the broad role and job profile of a loan officer, let’s give you a detailed look into the specifics of CA MLO license requirements next.
California MLO license requirements
To enjoy the exciting and rewarding career path of a mortgage loan officer, you must first understand what it takes to become one.
Many aspiring professionals often wonder how do I become a mortgage broker in California or what are the exact requirements to start working as a loan officer and if you are curious too, we have got you covered.
In California, you must complete a set of eligibility and qualifying requirements to become a licensed mortgage loan officer or originator.
Step 1: Meet the basic eligibility criteria
Working in the mortgage lending industry requires all applicants to be at least 18 years of age or older and have a valid social security number and proof of legal residency in the state of California.
If you meet the above statutory requirements, only then you can proceed to complete the next set of steps in the licensing journey.
Step 2: Register with the NMLS
California, like most states, follows the Nationwide Multistate Licensing System (NMLS) guidelines for issuing licenses for individuals and firms in the mortgage lending industry.
NMLS is the country’s largest and official database of all loan officers, mortgage originators, mortgage brokers, and lenders in California.
To get your mortgage loan officer license in California, you must first register with the NMLS by visiting the website and creating an account.
As part of this step, you will be required to submit personal information along with a few identification proofs to complete the registration.
Once your account is created, you will receive a unique NMLS identification number which will come in handy for the next set of steps.
Step 3: Complete MLO pre-licensing education
In California, you must complete 20 hours of NMLS-approved pre-licensing education to qualify for a MLO license.
Completing pre licensing education is a mandatory requirement and without doing so, you will not be able to legally work in the industry.
As part of the educational requirements, you must complete 20 hours of course credits covering fundamental and essential topics such as:
- Federal Laws (3 hours)
- Ethics, Fair Lending, and Fraud Protection (3 hours)
- Non-Traditional Mortgage Lending (2 hours)
- General Electives (12 hours)
Additionally, you will have to complete 2 hours of credits to learn about California state-specific laws and regulations for mortgage loan officers and brokers.
California has two official authorities and state licensing agencies, namely the California Department of Financial Protection and Innovation (DFPI) and the California Department of Real Estate (DRE).
Note that both of the above agencies have their unique set of requirements for MLO pre-licensing education.
Step 4: Submit your licensing application
After completing the pre-licensing education from an NMLS-approved education provider, you need to submit your licensing application.
The California law requires all applicants to complete mandatory background verification and criminal history check.
As part of this step, you must submit an electronic copy of your live fingerprint scan to the NMLS for approval.
Along with your electronic fingerprints, you must submit an updated credit report and disclose any criminal history or felony against you if applicable.
In case you have a record of any unlawful activity or any financial regulatory charges against you, then you must submit a certificate of clearance from the local sheriff’s office.
Step 5: Pass the SAFE MLO licensing test
With your education complete and your application submitted, it’s time to take the next crucial step in becoming a licensed mortgage loan officer in California.
In California, you must take and pass the SAFE mortgage loan originator test by scoring at least 75 percent or above.
Clearing the exam is mandatory to obtain your MLO license and start working in the mortgage lending and finance industry.
The closed book test consists of 115 multiple-choice questions covering both state and national-specific portions based on the topics covered in your pre-licensing education.
Note that it will cost you $110 for each attempt at the SAFE MLO test. If you are unable to clear the test in a particular attempt, you can reschedule it.
Step 6: Find employer sponsorship
After passing the MLO exam, you will receive your California MLO license but to activate it, you must submit proof of sponsorship from a state-based firm or employer.
California requires all newly licensed mortgage loan officers to work under the supervision of senior, more experienced officers and gain real-world, practical experience.