How to kickstart a career in the mortgage lending industry
You might think of mortgage loans as financial assistance, but they’re more than that - they are a medium through which consumers can turn their home ownership dreams into reality.
In real estate, getting a mortgage is a crucial part of a homebuyer’s journey - whether it is about purchasing a new home or refinancing an existing one,
Making the right decision relies largely on having the required knowledge and understanding of the various financial products, terms, interest rates, and payment plans.
For most buyers, it would be pretty difficult to buy their dream home without a mortgage. This is where the skills and expertise of mortgage loan officers come into the picture.
A mortgage loan officer (MLO) works with financial institutions such as banks and credit companies to help clients find the right mortgage plans for their home ownership needs.
Put simply, a mortgage loan officer is at the center of every translation that involves financing for housing.
It is the responsibility of a mortgage loan officer to distribute loans on behalf of financial institutions and lending companies to borrowers.
The mortgage lending industry is varied and one of the fastest-growing industries. Working in the industry can help you achieve a balanced mix of good income and job satisfaction.
The Bureau of Labor Statistics in the U.S. has projected that the number of job openings for licensed loan officers is going to increase significantly in the coming years.
If you are looking for a well-paying profession which has exciting growth prospects, working as a mortgage loan officer in the U.S. might just be the right fit for your professional goals.
The demand for skilled mortgage loan officers in the U.S. continues to grow year-on-year and you can easily make a six figure income within a few years of working in the industry.
On top of a high-paying job, a career as a mortgage loan officer will allow you to work in a thriving industry with a steady demand for your services.
All you need to get started is a mortgage loan originator license and you will be on your way to work with clients and help them navigate through the journey of getting a mortgage.
From education and licensing requirements, this in-depth guide covers all you need to know about starting a career in the mortgage loan industry.
Mortgage loan officer as a career choice
If you think of it, lending and borrowing have been the foundation of the economy since the dawn of capitalism.
When it comes to real estate and mortgages, people have been buying and financing properties with the help of creditors and lenders.
Working as a mortgage loan officer is a rewarding and enriching career path, especially if you have a knack for working with numbers with an analytical bent of mind and a desire to help people.
Most importantly, if you want to be a part of a dynamic, fast-moving and exciting profession, then working as a mortgage loan officer in the U.S. can be a good choice.
Due to the growing demand for housing in the country, there is going to be a rise in the job opportunities for skilled loan officers in banks, credit companies and independent lenders.
Imagine earning around the average income of $110K to $150K annually while enjoying additional job perks and benefits such as - commissions, remote working opportunities and a flexible schedule.
After amassing industry experience and building a clientele, you can choose to work independently and start your own agency or company if you have the entrepreneurial spirit.
The best part is that you do not need to spend years of education or training to build a thriving career - all you need to do is complete the mortgage loan originator course.
Compared to a sales-oriented job profile of a real estate agent or a broker, a mortgage loan officer offers a more relaxed, comfortable pace of professional life.
If you are an aspiring MLO, you can expect to give your career a steady and comfortable job with an array of practical and useful career benefits such as:
- High earning potential: As an entry-level professional, you can start making decent money in exchange for your skills. The starting salary for a loan officer is around $50K annually and can go as high as $170K depending on your experience.
- Promising career path: A career in the mortgage lending industry can offer you a steady and stable path in the long run. The demand for skilled loan officers in the U.S. is increasing steadily and so are the number of job openings.
- Better job satisfaction: As a loan officer, you will get the opportunity to help clients achieve their homeownership goals. Buying a home is an important financial and emotional decision, you will get the satisfaction of helping them realize their dream.
Needless to say, a career as a mortgage loan officer in the U.S. offers an exciting mix of challenges, rewards, fulfillment, and better work-life balance.
Excited to start your career? Let’s walk you through the common duties and responsibilities.
The job role and responsibilities of a mortgage loan officer
Despite popular misconceptions, a mortgage loan officer does more than just sign paperwork for approving or rejecting loans.
This is why you are expected to complete a mortgage licensing course to learn about the core principles, processes, and workings of the profession.
A mortgage loan officer performs a varied range of activities throughout their workday including administrative, operational, financial, and customer service-oriented tasks such as:
- Assist borrowers with loan applications:
As a loan officer, the most important responsibility of your job is to help clients navigate through the various stages of getting a mortgage.
One of the key steps in this journey is completing and submitting loan applications.
As a loan officer in the U.S., you will work with clients in filling out the application and
submitting the financial and personal documents required to obtain financing.
A loan application consists of nine separate sections and it is your duty to assist your clients in completing the application in a fair and truthful manner.
- Completing client verification:
As a mortgage loan officer, your job is to ensure that only qualified individuals are allowed to obtain a mortgage for their needs.
To ensure this, you must go through all the documentation and paperwork submitted by borrowers and ensure that the required information is accurate and honest.
To do so, you will have to run background checks, verify financial information such as credit scores, income stubs, taxes and other relevant details required for a mortgage.
- Suggesting mortgage plans:
A mortgage loan officer is expected to suggest the most suitable mortgage plans and interest rates to best fit the needs and financial abilities of borrowers. .
Your job will require you to work as a loan advisor and act as an advocate on behalf of your clients to help them make financial decisions.
A skilled loan officer in the U.S. will provide in-depth information about interest rates, mortgage plans, closing costs, and various financial services to their clients.
Note that your exact day-to-day duties and tasks might vary, depending on your employer.
Now that you have a basic overview of the main roles and responsibilities of an MLO, let us walk you through the steps to start your career.
Steps to Becoming a Mortgage Loan Officer in the U.S.
Are you ready to embark on a rewarding and exciting career in the mortgage lending industry? If yes, it’s time to prepare for an enthralling journey to obtain your license.
Getting a MLO license is the most crucial and essential aspect of working as a professional and here are the steps you need to complete to become licensed easily.
Step 1: Learn about the profession and the industry
While you might be excited to start applying for an MLO license, it is important to take some time to research the profession in detail.
Start by learning about the job role and key responsibilities and find out everything about what a mortgage loan officer is expected to do on an everyday basis.
By learning about your profession, you will feel more familiar and confident about pursuing it. Remember if you want to be good at something, you must first understand what it really is.
Another important tip is to gain a general awareness of the concepts and principles of the finance and lending industry.
Having a basic overview of the key terms will help you plan your expectations better and objectively gauge the level of difficulty in the licensing process.
Step 2: Meet the minimum eligibility requirements
Once you have an understanding of what a MLO does, the next step is to ensure that you meet the minimum eligibility requirements established by the NMLS.
The NMLS (Nationwide Multistate Licensing Services) requires all applicants to:
- Be at least 18 years of age or older
- Be a legal resident of the United States or a lawfully admitted alien
- Have a bachelor's degree in finance, accounting, business, or related field
Additionally, you might have to meet state-specific qualifying requirements to obtain your MLO license.
It is recommended that you reach out to the NMLS authority in your state to learn about the most recent and up-to-date licensing requirements.
Step 3: Complete pre-licensing education
Gaining knowledge about the financial and lending industry and how it works is essential to working with clients and guiding them in getting a mortgage.
To ensure that only skilled and knowledgeable individuals are given licensure, the NMLS has made it mandatory for all applicants to complete at least 20 hours of qualifying education.
To obtain an MLO license in the U.S., you must equip yourself with the industry laws, regulations, and guidelines by completing a mortgage loan originator course.
To meet the NMLS qualifying education requirements, you must complete these courses:
- Federal Law (3 hours)
- Real Estate Ethics (3 hours)
- Non-Traditional Mortgage Lending (2 hours)
- State-specific rules and laws (2 hours)
- General Electives (10 hours)
Note that some states might require you to complete additional topics as part of your education.
You are free to choose whether you want to join a physical, in-class school or enroll in an online, self-paced MLO license course to complete your course credits.
Step 4: Pass the SAFE licensing test
Once you have completed the pre-licensing course credits, you can take the SAFE MLO licensing test in your state.
The NMLS requires all applicants to take the test and score at least 75% or above to successfully pass it.
If you pass the SAFE licensing test, you will receive your MLO license within a few weeks.