How do I become a mortgage underwriter?

Under federal law, you do not need a loan originator license to work as a mortgage underwriter who performs support duties at the direction of a licensed loan originator and does not hold yourself out to the public. A supervised underwriter may analyze information and communicate with consumers, but must not offer or negotiate loan rates or terms. Independent contractors who underwrite residential mortgage loans must be state-licensed loan originators, which requires 20 hours of approved education and a passing score of at least 75% on the Secure and Fair Enforcement (SAFE) test.

It depends on your employment status. Under the Alabama SAFE Act, a supervised employee underwriter is excluded from the mortgage loan originator definition, so no MLO license is required for that role. An independent-contractor underwriter, by contrast, must obtain an MLO license, which means completing 20 hours of NMLS-approved prelicensure education and passing the SAFE test.

In Alaska, an underwriter who works as an independent contractor must hold the Mortgage Loan Originator License, so you follow the standard path: 20 hours of NMLS-approved pre-licensure education, a passing result on the National Test Component with Uniform State Content, and a Form MU4 filing with a credit report and FBI background check. Underwriting skills themselves are typically learned on the job or through training; the license is what Alaska requires to perform the work independently.

It depends on your work arrangement. Under Colorado law, loan processors and underwriters who are employees, not independent contractors, and who do not represent to the public that they perform loan-originator activities are exempt from licensing. If you work as an independent contractor, you must hold a state-licensed loan originator license, which requires the 20 hours of education, the SAFE exam, background checks, and insurance and bond requirements.

Connecticut requires a separate Loan Processor or Underwriter license, filed through NMLS. You complete 21 hours of approved prelicensing education, pass the written test, and pay a $300 license fee, and the license follows the same annual December 31 renewal cycle as the originator license. 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 license.

It depends on how you work. An employee underwriter who works at the direction and under the supervision of a Delaware-licensed lender or mortgage loan broker does not need an MLO license. An independent-contractor underwriter must obtain the same MLO license as any originator: 20 hours of prelicensing education, a passing score on the SAFE test, and the background check, credit report, and surety bond requirements.

In DC it depends on how you work. An individual engaging solely in loan processing or underwriting, who does not hold themselves out to the public as able to perform mortgage loan originator activities, is exempt from licensure. An independent contractor loan processor or underwriter, however, must hold a DC mortgage loan originator license, which requires 20 hours of pre-licensing education and a passing SAFE MLO test score.

Georgia does not require an MLO license for an underwriter who is an exclusive W-2 employee of a licensed mortgage broker or lender and does not assist borrowers in applying for or negotiating loans. Underwriting jobs are filled directly by mortgage companies. If you take residential loan applications or negotiate loan terms, you need the MLO license.

In Hawaii, underwriters who act as independent contractors must be licensed as mortgage loan originators, following the same path as any MLO: 20 hours of pre-licensing education, the SAFE test, background and credit checks, and sponsorship by a licensed company. Underwriters who are employees working under the direction and supervision of a licensed MLO are exempt from licensure.

In Idaho, an independent contractor loan underwriter must hold a Mortgage Loan Originator License, which requires 20 hours of pre-licensure education approved by the Nationwide Multistate Licensing System and Registry (NMLS), the SAFE MLO test, and an NMLS application. An independent contractor processor or underwriter who is not engaged in origination activities is sponsored by an Exempt Entity Registrant rather than a mortgage broker or lender.

It depends on your employment. Loan processors and underwriters who work exclusively as employees of a licensed or exempt mortgage company are excluded from the MLO definition under Indiana rule 750 IAC 9-3-1(g) and do not need a license. A processor or underwriter who is not an employee of a licensed or exempt company must obtain an MLO license and unique identifier to engage in residential mortgage underwriting activities.

Iowa law draws the line at employment status. A loan underwriter who is a W-2 employee of a company licensed under Iowa's mortgage licensing chapters does not need a mortgage loan originator license. An independent-contractor underwriter must obtain one and meet all licensure requirements, including the 20 hours of prelicensing education, the SAFE test, and a surety bond, before the license is issued.

Kansas does not require a mortgage loan originator license for underwriters who perform clerical or support duties as employees, working at the direction and supervision of a licensed or exempt person. The exemption applies only while the underwriter does not offer or negotiate loan rates or terms, does not counsel consumers about rates or terms, and does not represent to the public an ability to perform loan origination activities.

It depends on how you work. In Louisiana, an independent contractor working as a loan processor or underwriter must be separately authorized by filing a Form MU4 through NMLS, which means meeting the same education, testing, and background check requirements as a loan originator. Processors and underwriters employed by licensed third-party companies do not require sponsorship.

Maryland does not license mortgage underwriters who act solely as underwriters, so you need no state license to hold that job as an employee. The law differs for independent contractors: underwriting or processing as an independent contractor counts as mortgage loan origination and requires a mortgage loan originator license.

If you work as an employee underwriter performing clerical or support duties at the direction of, and under the supervision of, a licensed mortgage loan originator, Montana requires no mortgage license. Working as an independent-contractor underwriter is different: you must hold the Montana Independent Contractor License or the Montana Mortgage Broker License.

In Nevada, an underwriter who works as an employee performing clerical or ministerial tasks is excluded from MLO licensing requirements. If you work as an independent-contractor underwriter or loan processor associated with a mortgage company or certificate-of-exemption holder, you must obtain an MLO license. That path requires 30 hours of pre-licensing education, a passing score of 75% on the SAFE MLO national test, and a background and credit investigation.

A mortgage underwriter employed by a licensed New Hampshire mortgage company does not need a mortgage loan originator license. A loan processor or underwriter who works as an independent contractor must be licensed, which requires 20 hours of NMLS-approved pre-licensure education, a passing SAFE test score, and an employer sponsorship. Companies also report their licensed processors and underwriters annually on the state-specific section of the Mortgage Call Report.

Pennsylvania does not license underwriters separately. If you underwrite loans solely as an employee of a licensed mortgage company or an exempt institution, you need no MLO license. Independent underwriters, or those who also take applications or negotiate loan terms, must meet the full mortgage loan originator licensing requirements.

South Dakota requires independent-contractor loan processors and underwriters to obtain a license under SDCL chapter 54-14 (SDCL 54-14-13.4). The application must include fingerprints for an FBI criminal history check and authorization for NMLS and the director to obtain an independent credit report. You must also meet the chapter's character, fitness, and financial-responsibility findings before the director may issue a license.

The SAFE Act does not cover mortgage underwriting, so you do not need a mortgage loan originator license to underwrite loans in Tennessee. Licensing applies to individuals who take residential mortgage applications or offer or negotiate loan terms for compensation.

You do not need a Utah mortgage loan originator license to work solely as an underwriter. The loan originator definition in Utah Code 70D-3-102(12)(a) excludes an individual engaged solely as a loan processor or underwriter, so those roles fall outside state mortgage licensing.

It depends on how you work. An independent-contractor loan underwriter needs a full Mortgage Loan Originator License, which requires 24 hours of prelicensing education and a passing test score. A W-2 employee who underwrites solely for a licensed broker or lender, supervised by a licensed originator, does not need the license.

Wisconsin does not require a mortgage loan originator license to work as an underwriter. Loan processors and underwriters are exempt unless they hold themselves out to the public as able to perform loan originator activities, such as taking applications or negotiating loan terms. Underwriters who work from home are also exempt from the 100-mile office-distance rule that applies to licensed loan originators.