Explained: How Do I Become A Mortgage Broker In Florida
Let us start with who a Mortgage Broker is, also known as a Mortgage Loan Officer (MLO).
Who Is A Mortgage Broker: Role and Responsibilities
Mortgage Brokers are the backbone of the real estate sector, a finance professional who is the key link between a potential home owner and a lender of mortgage loans. Buyers depend greatly on mortgage loans to finance their purchase of properties, and MLOs are a catalyst in this process.
A distinction is necessary here between a Mortgage Broker and a Mortgage Loan Officer (MLO), though the difference is rather subtle. You should know about the two before embarking on how do I become a mortgage broker in Florida.
After you get a license as a mortgage loan professional in Florida, you have two choices before you.
First, you can work for a lender, a bank, or any other financial institution exclusively. You will thus offer mortgage schemes and interest rates to borrowers that are specific to the lender you work for. This is the work of a mortgage loan officer, also called a mortgage loan originator (MLO).
Next, you can work independently without being attached to a lender. In that case, you will liaise with various lenders and credit agencies that have different mortgage packages and interest rates. The advantage for borrowers here is that they have various mortgage packages from different lenders to choose from, as per their requirements.
Before starting the journey toward how to become mortgage broker in Florida, you should know about the responsibilities and duties of your profession.
The primary task of a mortgage broker is to guide aspiring homeowners through the entire loan process. It starts with obtaining the application with all the required details, along with supporting financial documents. The mortgage broker will then process the papers and submit them to the lender for sanction of a mortgage loan.
In a nutshell, a mortgage broker has a very critical role to play in the real estate sector. Buyers depend on them to finance their real estate purchases, without which the real estate market would go into recession. One of the leading real estate markets in the USA is Florida, and business-wise, it is a great gateway for mortgage brokers to launch their careers in the state. Thus, it makes sense if you know more about how do I become a mortgage broker in Florida and get into this profession.
For this post, we will use the designations Mortgage Broker and Mortgage Loan Officer/Originator (MLO) interchangeably, as there is not much to differentiate between the two titles.
How To Become A Mortgage Broker In Florida
Read on to get a reply to your question: How do I become a mortgage broker in Florida?
Before going on to the main steps of getting a license, a few preliminary norms must be met.
Completing basic eligibility requirements
The licensing norms, as is followed in all other states in the USA, are set by the Nationwide Mortgage Licensing Authority (NMLS). It is a body that sets the rules and regulations that must be followed to get a mortgage broker license. Among the roles played by NMLS are issuing and renewing mortgage licenses and setting the course curriculum for the MLO license course Florida.
The key requirement for how do I become a mortgage broker in Florida is to be at least 18 years old. This is the cut-off age to apply for a license. However, you are allowed to enroll in either an MLO online course in Florida or a classroom-based one and complete your pre-licensing coursework before you turn 18 years old.
To apply for a mortgage broker license in Florida, you must be a citizen of the USA with a Social Security Number. However, migrants who have legally entered the USA and have been given working rights in the country can also look into how do I become a mortgage broker in Florida.
On the educational front, you do not need a college degree to become a mortgage broker in the Sunshine State. A high school diploma or its equivalent, such as a GED, will do as laid down by NMLS.
After you have met these three basic license requirements, create an account on the NMLS portal. You will be issued an ID number that will be your recognition mark as a mortgage loan officer in Florida. This number is your exclusive identification and must be quoted in all correspondence and contracts you take up as a mortgage loan officer in Florida.
Going through the pre-licensing course
Going through the pre-licensing course is among the most critical steps in your quest how do I become a mortgage broker in Florida. It is because the mortgage industry is governed by very complex rules and regulations, and any transaction involves huge sums of money. Not knowing about them and making mistakes later in your career will have severe financial and legal consequences.
Further, to establish your credibility in the mortgage sector, you must have the required knowledge to offer the best services to your clients. You should be able to offer information on the best deals and packages to them for mortgage loans. An MLO license course in Florida will prepare you well for your future career.
The pre-licensing course consists of two sections. One is the 20-hour national section that covers the mortgage rules and regulations that are common throughout the USA. The subjects in this part are as follows.
· Federal Laws
· Ethics, Fraud, and Consumer Rights Protection
· Non-Traditional Mortgage Lending
· General Electives
The other part is the 2-hour section. The subjects here are exclusive to the mortgage rules and regulations that are valid in Florida only. It must be mentioned here that states in the USA are at liberty to pass their own rules that govern the mortgage sector, though the broader federal framework is to be maintained.
How to choose a quality pre-licensing course provider
You will be spoilt for choice when you research the market for course providers. However, only top-quality study materials can guarantee that you pass the SAFE licensing exam on the first try. Here are some tips to help you in this regard.
NMLS-approved: Select a course provider whose courses are approved by NMLS. This is not a choice but is mandatory. Any other study material that you select will not be counted as having completed the 22-hour coursework required to appear for the licensing exam. Your time and investment will be wasted. To be sure, visit the NMLS portal and check the list of approved course providers before investing in one.
Learning medium: You can choose between an MLO online course in Florida or a physical classroom-based course. It depends on the learning style that you are comfortable with.
However, online courses have an edge over real estate physical schools. You can download the study materials in an online medium onto any Internet-enabled device to be studied later from any location. Your daily routine is not disrupted in any way when you are on your way to how do I become a mortgage broker in Florida.
On the other hand, you have to commute to a physical classroom if you select physical studies, which can be a drain on your money and time.
Mock tests: Select an MLO license course in Florida that has packages with mock tests and practice questions. While they can cost marginally more than basic courses, they have immense benefits. This is because mock tests and practice questions replicate the form and structure of the licensing test, giving you the mental strength to face the licensing exam with greater confidence.
Among the leading providers of NMLS-approved MLO online courses in Florida is RealEstateU. You are assured of quality study materials as the lessons are created by top mortgage professionals.
Background check
A mortgage broker must have high financial and moral integrity and standards. This is because they deal with transactions that involve large amounts of funds. To acquire the trust of clients, they should have impeccable credentials without any past criminal history or a felony. Before starting on how to become a MLO in Florida, ensure that you meet these benchmarks as set by NMLS. Fingerprint submission for past verification is the only way to ensure this aspect.
The process of fingerprint check and background verification is relatively simple.
For a federal criminal background check, visit the NMLS portal to authorize and schedule the check through an NMLS-authorized vendor.
For a Florida-specific criminal background check, submit your fingerprints to an FDLE (Florida Department of Law Enforcement)-approved Live Scan service. Provide the FDLE ORI number FL737111Z to the Live Scan Vendor for the correct submission of fingerprints to FDLE.
In case of an adverse fingerprint report, NMLS reserves the right to halt your progress on how do I become a mortgage broker in Florida. The fees for fingerprints, payable to NMLS is $36. It might take a couple of weeks to get your fingerprint scan report, so factor it in when calculating the time span for how to become a mortgage broker in Florida.
Scheduling and appearing for the SAFE test
After you have completed the 22-hour MLO license course in Florida, visit the NMLS portal to schedule the SAFE (Secure and Fair Environment) licensing exam. On the appointed date, appear for the test and pass the exam with at least a 70% grade. The test consists of 120 multiple-choice questions that must be completed in 190 minutes.
While scheduling the exam, you must select a designated test center where you have to appear physically, though the exam is held online. The result of the exam in pass/fail grade is announced soon after the test is over at the center itself. The official result is informed to the candidates via email within a couple of weeks.
Apply for an MLO license in Florida
After passing the SAFE license test, visit the NMLS portal to apply for a mortgage broker license in Florida. Upload all eligibility documents, such as age proof, completion of the pre-licensing coursework, and fingerprint clearance certificate. You will now be issued a provisional license as part of how to become a mortgage broker in Florida, but you cannot start your practice until you complete the final step.
Find a lending institution to sponsor you
Get employment in a mortgage lending agency or a financial institution as part of your apprenticeship as an MLO. It will help you to quickly learn about the intricacies of the mortgage industry in Florida. Now, visit the NMLS portal again and inform them about your employment status.
Your provisional license will now be activated, and you can launch your career as a mortgage broker in Florida.
As you can see, a Florida mortgage loan originator license online is the quickest way to get one. You can apply for a license, schedule the SAFE test, and even appear for the test online. If all these steps had to be done through physical presence, the time to get a license would have nearly doubled.
Summing up
An important question now is how long it takes to get a mortgage broker license in Florida. Overall, it takes about 3 to 4 months, depending primarily on how quickly you can go through the online pre-licensing coursework.
Let us check the approximate time for each step.
Creating an account with NMLS and getting an ID number takes about two weeks. The pre-licensing course can be rushed through in two weeks, or you may complete it at your own pace. Scheduling the SAFE test and passing the exam depend on how soon you want to do it.
Finally, after you apply for a license, it takes between 1 and 2 months for NMLS to issue you one, depending on the pending applications at that time. All these together work out to 3 to 4 months.
Go through these steps to get an answer to how do I become a Mortgage Broker in Florida.