Do you need a certification to work as a loan processor?

No certification is required to work as a loan processor, and processing does not require formal educational training. Licensing depends on your role: a supervised processor who works at the direction of a licensed loan originator and does not hold themselves out to the public does not need an MLO license, while an independent-contractor processor must be licensed as a state-licensed loan originator under the SAFE Act.

It depends on the employment arrangement. In Alabama, a loan processor who works as a supervised employee of a licensed mortgage company does not need an MLO license. A loan processor who works as an independent contractor must obtain a mortgage loan originator license under the Alabama Secure and Fair Enforcement for Mortgage Licensing Act.

No certification is required to work as an employee loan processor, and the role generally requires no formal training beyond a high school education. However, Alaska is distinctive on one point: a loan processor or underwriter who works as an independent contractor must hold the Alaska mortgage loan originator license.

No certification is required for purely administrative processing work. Arkansas rules define clerical and administrative tasks to include collecting and distributing information used in processing or underwriting a mortgage loan, so long as the work does not include soliciting, accepting, or negotiating the terms of a mortgage loan. A processor who performs those licensed activities for compensation from a mortgage broker or mortgage banker must hold a loan officer license.

No certification is required, but the license rules depend on how you work. Under California Business and Professions Code 10166.03, an independent-contractor loan processor or underwriter must hold a real estate broker license with an MLO endorsement. Employees who perform purely administrative or clerical tasks for a mortgage loan originator are excluded from the endorsement requirement.

No certification is required for a loan processor who is an employee of a company and does not represent to the public that they perform loan-originator activities; Colorado exempts those processors under section 12-10-709. A loan processor working as an independent contractor must instead hold a mortgage loan originator license under section 12-10-704(2).

Yes, Connecticut requires one. The state issues a separate loan processor or underwriter license, a requirement few other states impose. Employees of a licensed lender or broker who process or underwrite loans at the direction of and under the supervision of a licensed mortgage loan originator are exempt from the requirement. Licensed loan processors and underwriters must register with NMLS, maintain a valid unique identifier, and renew annually.

No certification is required, but licensing depends on how you work. A loan processor who is an employee working at the direction and under the supervision of a Delaware-licensed lender or mortgage loan broker does not need an MLO license. A loan processor who works as an independent contractor must obtain and maintain an MLO license.

It depends on how you work. In DC, an independent contractor loan processor or underwriter must hold a mortgage loan originator license under D.C. Code § 26-1101(5A). An individual who engages solely in loan processing or underwriting and does not hold themselves out to the public as able to perform MLO activities is exempt from licensure, so employee processors generally do not need one.

No certification is required. Florida treats loan processors in two ways. An in-house loan processor must be an employee of one mortgage broker or lender and work under the supervision of a licensed loan originator. A contract loan processor who serves multiple brokers or lenders must hold a loan originator license and file Form OFR-494-13, a declaration of intent to engage solely in loan processing, with the Office of Financial Regulation.

No certification is required. A processor or underwriter who works exclusively as a W-2 employee of a licensed Georgia mortgage broker or lender, and who does not take loan applications or negotiate terms, does not need an MLO license. The company itself holds the broker/processor license; a person who independently solicits, processes, places, or negotiates mortgage loans for others is required to hold that license.

No state certification exists for loan processors in Hawaii. However, a processor who works as an independent contractor, rather than as an employee performing clerical or support duties under the direction and supervision of a licensed mortgage loan originator, must be licensed as an MLO under Chapter 454F.

No certification is required, but licensing depends on how you work. In Idaho, a loan processor who works as an independent contractor, or who is a W2 employee of an Exempt Entity Registrant, must hold the Mortgage Loan Originator License. A processor who takes residential mortgage loan applications or negotiates loan terms for compensation also needs the license, regardless of job title.

In Illinois, it depends on what the work involves. The state requires an MLO license for anyone who, for compensation, takes a residential mortgage loan application or offers or negotiates loan terms. Independent loan processor entities must employ one or more licensed MLOs to provide supervision, and a sole loan processor must be a licensed MLO. Processing work that does not involve taking applications or negotiating terms falls outside that license definition.

It depends on your employer. Under Indiana rule 750 IAC 9, a loan processor or underwriter who works exclusively as an employee of a licensed or exempt mortgage company is excluded from the mortgage loan originator definition and needs no separate MLO license. A processor who is not such an employee must obtain an MLO license and unique identifier to engage in residential mortgage activities. On the Secretary of State (SOS) track, employees of a registered loan processing company must be licensed as MLOs with an "Approved-Conditional" status that permits processing activities only.

It depends on your employment status. A loan processor or underwriter working as an independent contractor must hold a mortgage loan originator (MLO) license and a Nationwide Multistate Licensing System (NMLS) unique identifier under Iowa Code 535D. A processor or underwriter who is a W-2 employee of a company licensed under Iowa's mortgage statutes does not need a license.

No license or certification is required for loan processors who perform clerical or support duties as employees, at the direction and supervision of a licensed or exempt person. A processor crosses into licensure territory by offering or negotiating loan rates or terms, counseling consumers about rates or terms, or representing to the public an ability to perform loan originator activities.

No. Since July 2016, employee mortgage loan processors in Kentucky do not register with the Department of Financial Institutions. The employing entity must instead run a background check and credit check before hiring, and the processor must complete 8 hours of continuing education each year, with the employer keeping proof. Contract (non-W-2) processors still must register as loan originators.

Louisiana uses a license rather than a certification for loan processors who work independently. An independent contractor working as a loan processor or underwriter must be authorized by filing a Form MU4 through the Nationwide Multistate Licensing System (NMLS) under the Louisiana S.A.F. Residential Mortgage Lending Act. Processors employed by third-party companies do not require a sponsorship request, and a supervised employee processor generally does not need a license.

No certification is required; what matters is how you are employed. Under federal rules (12 CFR 1008.103), independent-contractor loan processors must be state-licensed, but processors who perform only clerical or administrative duties do not need a license. Employees of banks and credit unions register federally through NMLS instead.

In Maryland, no license or certification is required for a loan processor who acts solely in that capacity, because such a person is excluded from the state's definition of mortgage loan originator. The exclusion does not extend to independent-contractor processors. Maryland treats independent-contractor processing as mortgage loan originator activity, which requires an MLO license.

No state certification or license is required to work as a loan processor in Massachusetts. Under 209 CMR 41.00, loan processors and underwriters acting as employees are exempt from Mortgage Loan Originator licensing. The exemption does not extend to independent contractors, who must be licensed.

No. Loan processing is not covered by the SAFE Act licensing requirement, so processors do not need an MLO license or a state certification to work in Michigan. The same exclusion applies to loan underwriting. A processor only needs a license if they begin taking residential mortgage loan applications or negotiating loan terms for compensation.

It depends on your role. In Minnesota, a loan processor or underwriter who works as an independent contractor must obtain a mortgage loan originator license, which requires the same 20 hours of prelicensing education, the national test, and an NMLS application. A loan processor or underwriter who is an employee of a mortgage company does not need the license.

Mississippi has no certification requirement for loan processors. An employee processor who performs only clerical or support duties is exempt from mortgage loan originator licensure, but a loan processor or underwriter working as an independent contractor must obtain and maintain an MLO license.

Missouri does not require a state license or certification for loan processors who act solely in that capacity. The statute's definition of mortgage loan originator excludes processors and underwriters acting only as processors, so licensure applies only if you also take residential mortgage loan applications or offer or negotiate loan terms.

No license or certification is required if you work as an employee loan processor or underwriter performing clerical or support duties at the direction of, and under the supervision of, a licensed MLO. Independent-contractor processors do need a license: either the Montana Independent Contractor License or the Montana Mortgage Broker License.

It depends on how you work. An employee loan processor or underwriter supervised by a licensed mortgage loan originator does not need an MLO license in Nebraska. An independent-agent loan processor or underwriter working for a mortgage banker, mortgage registrant, or installment loan company must obtain a mortgage loan originator license to conduct that work.

No, not if you work as an employee doing only clerical or ministerial tasks. Nevada excludes employee loan processors from mortgage loan originator licensing (NRS 645B.0125). Independent-contractor loan processors associated with a mortgage company or certificate-of-exemption holder must hold an MLO license.

In New Hampshire, a loan processor must be licensed as a mortgage loan originator when working as an independent contractor. The state's licensing checklist applies this requirement only to independent-contractor processors and underwriters, not to processors employed directly by a licensed company. An independent-contractor processor follows the same path as any originator: 20 hours of NMLS-approved education including 2 hours of New Hampshire law, the SAFE test, and a sponsored MU4 application.

No. New Jersey does not require loan processors to hold a license or certification when they perform solely clerical or support duties as supervised employees. The mortgage loan originator license is required only for people who, for compensation, take residential mortgage loan applications or offer or negotiate loan terms. A processor who begins performing those activities must become licensed.

No license or certification is required for a loan processor in New Mexico who performs clerical or support duties as an employee under the supervision of a licensed or exempt person. A processor or underwriter who works as an independent contractor, however, must obtain a Mortgage Loan Originator License.

New York has no loan processor certification. Independent contractor processors and underwriters, and their employees, who work on New York residential mortgage loans secured by 1-4 family properties must hold a mortgage loan originator license under Article 12-E of the Banking Law. Individuals who only take customer information and refer borrowers to others do not need the license.

No certification or mortgage loan originator license is required for a loan processor in North Carolina, as long as the individual acts solely as a processor. The exclusion does not cover processors who also take applications or negotiate loan terms. A company that contracts processing or underwriting services to lenders must instead register as a Mortgage Origination Support Registrant with the state.

In North Dakota, loan processors do not need a certification or license when they work as employees performing clerical or support duties under supervision, because state law does not treat that role as a mortgage loan originator. The rule changes for independent-contractor processors: an independent-contractor loan processor or underwriter must obtain and maintain a mortgage loan originator license under ND Century Code 13-10-03.3.

No. Loan processing is not covered by the SAFE Act's licensing requirement, which applies to individuals who, for compensation, take residential mortgage loan applications or offer or negotiate loan terms. A loan processor who does not perform those activities is not required to hold a mortgage loan originator license.

Oregon has no separate loan processor certification. The Division of Financial Regulation regulates independent contractor processors, and they must hold a mortgage loan originator license obtained through NMLS. A processor employed directly by a licensed mortgage company is covered under the company's licensing, while anyone who takes loan applications or negotiates loan terms must hold a loan originator license.

No, if you work as an employee who solely processes loans for a licensed or exempt company, Pennsylvania excludes you from the mortgage originator definition and no license is required. Independent processors who take applications, offer terms, or negotiate rates are engaging in origination activities and must hold a mortgage originator license.

No. A loan processor whose activities are ministerial and clerical does not need the Rhode Island Mortgage Loan Originator License or a certification. The license is required only for someone who, for a fee, advises about loan products and their terms, informs applicants about the benefits and conditions of a loan, or negotiates the making of a mortgage loan.

No MLO license is required for a processor who works as a supervised employee of a licensed mortgage company, and South Carolina law creates no separate processor certification. The rules change for independent contractors: contractor processors and underwriters must comply with the Licensing of Mortgage Brokers Act, must not originate mortgage loans, and independent-contractor processors under the lender statute must be licensed under agency rule.

Yes, if you work as an independent contractor. South Dakota law requires independent-contractor loan processors and underwriters to obtain a mortgage loan originator license under SDCL chapter 54-14. No person may act as a mortgage loan originator in the state without first obtaining and maintaining a license and a unique identifier through NMLS.

No state license or certification is required to work as a loan processor. The SAFE Act's licensing requirement applies to individuals who take residential mortgage loan applications or offer or negotiate loan terms for compensation; loan processing and underwriting activities are not covered. Employers may still require their own training, which is typical after hiring.

If you work as a loan processor or underwriter as an independent contractor rather than a W-2 employee, you must be licensed as a residential mortgage loan originator in Texas under Finance Code Section 180.051(b). W-2 processor and underwriter employees of a licensed company are exempt. Under the state rules, everyone working for an independent loan processor/underwriter company is treated as an independent contractor and must hold the license.

No license is needed for that work alone. Under Utah Code 70D-3-102(12)(a), the Department of Financial Institutions' loan originator definition excludes an individual engaged solely as a loan processor or underwriter. Originating or servicing loans is different: those activities require a mortgage loan originator license, and in Utah the Division of Real Estate and the Department of Financial Institutions each license different mortgage activities.

No certification is needed if you work as a W-2 employee performing only clerical or support duties; Vermont exempts those loan processors from licensure. An independent-contractor loan processor or underwriter must hold an MLO license, because the license requirement covers anyone who for compensation takes a residential mortgage loan application or negotiates loan terms.

It depends on how you work. In Washington, independent contractor loan processors and underwriters must hold a Mortgage Loan Originator license, and the license is also required for independent contractor processors representing licensed or exempt mortgage brokers and consumer loan companies. Obtaining it requires 22 hours of pre-licensing education, passing the SAFE test, and filing an application through NMLS.

Not in every role. A W-2 employee who works solely as a loan processor or underwriter for a licensed lender or broker, and is supervised by a licensed MLO, does not need a West Virginia license. An independent-contractor loan processor or underwriter must hold the Mortgage Loan Originator License and complete the same 24 hours of prelicensing education and testing as any other applicant.

No license is required to work as a loan processor in Wisconsin. Wisconsin exempts loan processors and underwriters from the mortgage loan originator license unless they hold themselves out to the public as able to perform loan originator activities. A processor who takes applications or negotiates loan terms for compensation would need the license.