Get Your Mortgage Loan Originator’s License

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) defines the role of a mortgage loan originator. An MLO is responsible for negotiating mortgage loan terms and taking mortgage loan applications. To be a practicing MLO, it is necessary to first obtain a mortgage loan originator license.

An MLO contacts potential clients who need real estate financing to buy or invest in properties.

Loan Officer is a job title that can mean different things depending on several variables. These include the work location, products offered by the employer, and who are the recipients of the products. The Loan Officer, after completing an MLO pre-licensing course, liaises between lenders and potential borrowers. 

A “Loan Officer” is also called a “Loan Originator,” “Mortgage Loan Originator,” or “MLO.” MLOs help consumers requiring real estate mortgage financing by negotiating terms with them. 

MLO’s and Loan Officers, having completed an MLO license course, bring in business for lenders. Their main job is to find clients who need loans their employer offers and negotiate loan terms with them. 

Closing the sale is an important part of an MLO’s job. It involves taking the loan application and starting the documentation to support the loan request. An MLO interacts with the applicant during loan processing until the application is approved and closed.

A Mortgage Loan Originator (MLO) license is a state - issued license. With it, an MLO works on behalf of a lender to make residential mortgage loans secured.

The work of an MLO involves obtaining residential mortgage loan applications from consumers. These applications are then processed and terms negotiated on behalf of their employer - lender. 

An aspiring MLO must complete mortgage loan originator license courses before getting a mortgage loan originator license. Licensed MLOs are employed by non-depository mortgage lenders, independent mortgage bankers, and mortgage brokers

An MLO works for lenders of residential mortgage loans after receiving a mortgage loan originator license. However, the properties must be located within the mortgage loan originator license - issuing state. Mortgage loan originators take mortgage loan applications and negotiate mortgage loan terms with consumers. 

Although they are not required to be licensed, Mortgage Loan Officer Assistants and Processors may want to take a mortgage pre-licensing course online and obtain a mortgage loan originator license. With a license these individuals are in demand as salaried employees, and this would be a good starting point to launch a mortgage lending career.

Their functions involve processing mortgage loan applications, obtaining loan approvals, and closing mortgage loans. These individuals charge a fee for their services and may work under contract for more than one mortgage broker or lender.

The first requirement to get a mortgage loan originator license is to go through the MLO pre-licensing education and pass a test. You must also find a lender or broker as your employer and sponsor. 

As per the SAFE Act, MLOs must get a license before they can take up any financing work. 

Register with the Nationwide Multistate Licensing System and Registry (NMLS) to get a mortgage loan originator license.  The body also maintains records and communicates between state licensing authorities and their licensees but does not issue licenses. 

The mortgage loan originator course offered by RealEstateU has a minimum of 20 hours of pre-licensing training. Moreover, many states require up to 4 hours of additional training. Here too, RealEstateU provides the best mortgage loan originator online course. You must also pass a test, which is a standard test for all states.

Completing the mortgage licensing course and passing the test is not enough to be an MLO. Get sponsorship from a company licensed as a mortgage broker, lender, or independent mortgage banker. When all these pieces come together, you can begin your career as a mortgage loan originator

The Mortgage Loan Originator job is mainly obtaining loan applications from prospective buyers of properties. The earnings are commissions from those loan applications that are closed by the lender. 

Lenders who hire and train entry-level MLOs pay salaries as it takes some time to maintain a steady flow of closed loans. 

The pay arrangement is changed to commissions only once there is a steady inflow of applications to the lender.

The Mortgage Loan Originator job is a sales job. Experienced loan originators get either a commission or a smaller salary plus a commission. 

However, salary-only jobs are rare in the industry since experienced mortgage loan originators working on commission-based packages generally earn much more.

The Nationwide Multistate Licensing System and Registry (NMLS) manages non-depository financial services, licensing, and registration,in all U.S. jurisdictions. This includes all states, the District of Columbia, and territories like Puerto Rico, the U.S. Virgin Islands, and Guam.

The Consumer Financial Protection Bureau’s Regulation G sets the services of NMLS. The guidelines fall under the purview of the SAFE Mortgage Licensing Act. Companies and individuals applying, amending, renewing, or surrendering licenses do so through NMLS. NMLS does not issue or deny licenses though state licensing government agencies use its services. 

The State Regulatory Registry LLC oversees the operations of NMLS launched in January 2008. The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators established the SRR, a limited liability corporation.

The term “getting a license through NMLS” refers to those licenses obtained through NMLS in 66 state and territorial territorial licensing agencies. NMLS itself does not issue licenses, rather it is the system used by the agencies who do issue those licenses. Through the NMLS website, you can find the details about the state licenses that interest you