Get An MLO License: Complete Mortgage Loan Originator Course In NY

Do you want to get a New York mortgage license and launch a very rewarding and successful career? If yes, your first step would be to know how to become a mortgage broker in NY.

In this post, we will go through every detail of obtaining an MLO license New York, with special focus on the mortgage loan originator course in NY. We will also discuss who a mortgage loan officer (MLO), often called a mortgage loan originator, is, their duties and responsibilities, and the earnings after they qualify to practice as an MLO in NY.

Before going further, it is necessary to clear the subtle difference between a mortgage loan officer and a mortgage broker, as the two titles will be used interchangeably here.

A Mortgage Loan Officer/Originator (MLO) works directly for a specific bank, credit union, or mortgage lender. They represent their employer’s interests and offer loan products and rates of that institution only.

A Mortgage Broker works independently or for a mortgage brokerage firm and offers borrowers the best mortgage products from a pool of lenders. Since they can recommend loan options from several lenders, borrowers are assured of the best products that match their requirements.

Before heading to how to become a mortgage loan officer in New York, let us understand the duties and responsibilities of a mortgage loan officer.

What Does A Mortgage Loan Officer Do

A Mortgage Loan Officer is the bridge between borrowers of mortgage loans and the lending institutions. They do not have any loan sanctioning authority, with their duties limited to assessing the financial profile of the borrowers, determining loan eligibility, and recommending suitable loan products.

The mortgage loan sanction process starts with an MLO meeting potential borrowers to assess their financial health and goals for home ownership. Based on this assessment, MLOs suggest the right mortgage products that are in sync with the borrowers’ financial requirements.

Next is the crucial work of guiding the applicant through the entire procedure, from initial submission to closing. The MLO will collect, check, and analyze all financial documents of the borrower, such as debt information, income statements, and tax returns. The processed papers will then be submitted to underwriters for review and approval. 

All this time, an MLO will maintain open channels of communication with borrowers, updating them about the loan approval status. They are also responsible for ensuring that the loan process complies with all national, state, and local lending regulations.

The Function Of The Nationwide Mortgage Licensing System (NMLS)

To be perfect on the job, MLOs must go through the mortgage loan originator course in NY and get a license to launch a career in this field. This is mandated by the Nationwide Mortgage Licensing System (NMLS), an online platform that supervises various aspects of the mortgage industry.

NMLS oversees state license application and renewal, both for MLOs and lending companies operating in the consumer finance, debt, mortgage, and other money services. The body also renews the registration and licenses of banks and credit unions that sanction mortgage loans, as well as MLOs who work for them.

As we shall see now, NMLS plays a critical role in deciding the curriculum of the mortgage loan originator course in NY and in deciding the mortgage broker license requirements New York.

How To Become A Mortgage Loan Officer In New York

It is mandated by NMLS that any person in NY assisting potential borrowers to get a mortgage loan from a lending institution must have a New York mortgage license. This is true for all the states in the USA. Hence, let us now go through the details of how to become a mortgage broker in New York.

Preliminary requirements

Before starting on the various requirements to obtain an MLO license in New York, make sure that you are at least 18 years old on the date you apply for a license. To save time, you may complete other essentials, like going through the mortgage loan originator course in NY, before the cutoff age.

You must also be a legal resident of New York with a valid Social Security Number. Migrants admitted legally into the country may also apply for a mortgage license, provided they have been granted working rights in the USA. The minimum educational requirements to apply for an MLO license in New York are a high school diploma or its equivalent, such as a GED.

Registration with NMLS 

Visit the NMLS portal and create an account. You will be issued a unique ID number that will be your identification throughout your career as an MLO. At this stage, you should visit the NMLS State Licensing website to get a clear picture of mortgage broker license requirements in New York.

Go through the mortgage loan originator course in NY

The mortgage loan originator course in NY is divided into two sections: the national level 20-hour part and the 3-hour state-specific part. The first goes into the topics that are related to the mortgage industry in the country, while the second covers topics specific to the mortgage rules valid in New York only.

The purpose of completing the 23-hour pre-licensing coursework is to gather adequate knowledge about the mortgage sector. Real estate transactions involve huge sums of money, and any mortgage loan recommended by MLOs that does not comply with state and federal laws might have adverse legal and final implications. The coursework gives you thorough knowledge in this field and prevents such possibilities.

The 20-hour national section consists of the following subjects.

• Federal Law and Regulations (3 hours): Includes national mortgage-related laws and regulations driving the mortgage industry.
• Ethics (3 hours): Focuses on fraud prevention, consumer protection, ethical conduct, and fair lending practices.
• Non-traditional Mortgage Lending (2 hours): Topics covered are mortgage types that do not fall under traditional mortgage lending practices
• Electives (12 hours): You can select from various mortgage-related topics that will help you in continuing education after you are awarded an MLO license in New York.  

Additionally, as part of the mortgage loan originator course in NY, there is the 3-hour state-specific New York Law focusing on the regulations related only to the state.

Several points must be kept in mind while selecting an MLO course in NY. A high-quality course will ensure that you are well-conversant with mortgage rules and regulations in the state and can pass the licensing exam on the first try.

NMLS-approved course: Always select a course that is approved by NMLS, as it is an assurance of the quality of the coursework. Moreover, an unapproved course will not be counted as having completed the 23-hour mortgage loan originator course in NY. It is advisable to visit the NMLS website and check the approved list before investing in a course provider.

Select an advanced course package: Course providers offer different packages of study materials, from the basic ones to advanced courses. While the basic courses offer guidance on mortgage topics, the advanced ones have mock tests and practice questions.

Now, why are these important? It is because the questions in the mock tests replicate the format and structure that you will face in the licensing test. Hence, not only will you know what to expect in the exam, but you will also get the confidence to pass the test on the first try.

Before deciding on a mortgage loan originator course in NY, check out what RealEstateU, a leading online and NMLS-approved provider, has to offer. Their courses are designed by leading mortgage professionals and are thereby a cut above others in this niche. However, despite the effectiveness of the coursework, their packages are the lowest-priced in this niche.

Physical or online courses: You can select either an online course or a classroom-based one. It depends entirely on your preferred learning style. However, online courses have an edge because of the following reasons.

First, online courses save time and money. You do not have to spend heavily commuting to and from physical classes. Time is also a factor, as commuting time can be spent more fruitfully studying for the licensing exam.

Next, online courses are more flexible and convenient. You can download the lessons onto any Internet-enabled device, such as a smartphone, tablet, or laptop. These can then be studied from any location and at any time without disrupting your normal routine.

Finally, an online mortgage loan originator course in NY is cheaper than physical classes. For example, the basic package from RealEstateU costs $199, while the advanced package with study guide and e-textbooks is available for $278 only. In comparison, classroom-based courses cost upward of $500.

Complete background verification

Mortgage loan officers are expected to have high moral and financial standards and integrity as they handle financial aspects related to the industry. One of the ways to check this is through fingerprint verification for past criminal records.

In case of an adverse report, NMLS reserves the right to refuse to issue a New York mortgage license. Grounds for disqualification include certain financial crimes, such as forgery, fraud, or bribery, and felonies in the past seven years.

The background verification process is quite simple.

From the NMLS portal, input your ID and authorize a criminal background check (CBC). You need to submit your fingerprints now to the FBI through a designated service provider. If your fingerprint, taken within the last three years, is on record with the NMLS, this submission can be avoided. Also, authorize NMLS to obtain an independent credit report.

Once these background and credit report checks are completed, they will be sent to NMLS for consideration before they award a New York mortgage license.

Schedule a S.A.F.E. licensing exam

On the NMLS website, schedule a S.A.F.E. (Secure and Fair Enforcement) licensing exam to get a New York mortgage license. Create a test enrolment window by paying $110 as a testing fee. This step is essential before you can schedule your test appointment.

There are two ways to schedule your licensing exam – online or in-person. In the online proctored test, there are separate rules that must be followed through the Prometric Pro-Proctor. For the in-person licensing test, you must appear physically at a Prometric Testing Center.

Even after getting a test appointment, you can reschedule or cancel the test as per the guidelines of the cancellation and rescheduling policy of NMLS. 

Appear for the S.A.F.E. licensing exam

Passing the S.A.F.E. licensing test is crucial to being awarded a New York mortgage license. The test is in a multiple-choice format and consists of 120 questions (115 scored) to be completed in 190 minutes.

The national-level section of the exam, also called the Uniform State Content (UST), covers the following topics.

• Regulatory authority, responsibilities, and limitations
• Definitions and documents
• License law and regulation
• Compliance

Apply for an MLO license in New York

After all the formalities have been completed, such as going through the mortgage loan originator course in NY and passing the S.A.F.E. test, apply for a New York mortgage license. Visit the NMLS portal, pay the license application fee, and apply for a mortgage license. You will now be issued a provisional license that does not yet allow you to start work in the mortgage industry.

Find an employer to sponsor you

Find an employer, such as a lending institution or mortgage broker, to sponsor you. This helps freshers to learn the intricacies of the mortgage industry first-hand. Now, inform NMLS of your employment status to get your provisional license activated.

You will now be allowed to work in New York as a mortgage loan officer.

How Long Does It Take To Get An MLO License in New York

There are several factors to consider when you aspire for a New York mortgage license.

It takes about two weeks to obtain a unique identification number once you create an account with NMLS. This is the total time required and includes documentation and background check. 

Time to go through the mortgage loan originator course in NY depends on the pace of your study. However, even if you take it easy, it should not be more than a couple of weeks.  

Scheduling and passing the S.A.F.E. test should take another two to three weeks.

Finally, the time taken for NMLS to review the license application and all documents and issue a license takes two to three weeks. This is flexible, as the number of pending applications with NMLS is a major factor here.

Overall, the time to get an MLO license in New York is 2 to 4 months.