Want To Work in The NY Mortgage Lending Industry? Read this

New York is one of the most popular, attractive, and alluring destinations in the world and has historically been a strong real estate market.

The demand for residential, commercial, and luxury real estate in NY continues to grow steadily, thanks to a strong economy, diverse culture, and myriad job opportunities.

NY’s unique charm can be attributed to its bustling city life, beautiful towns, sprawling skyscrapers, and world-class entertainment and lifestyle choices.

As the demand for homes in NY grows, so does the number of employment opportunities for mortgage loan officers and mortgage brokers.

For most consumers, buying a new home or refinancing an existing one requires a mortgage, especially in NY’s highly valued real estate market.

This is why there is a need for skilled, knowledgeable, and licensed professionals in the mortgage lending industry in NY.

Working as a mortgage broker or loan officer in New York can be an incredibly rewarding and fulfilling career experience, especially as you can earn a six-figure income while helping clients achieve their homeownership goals.

Loan officers are employed by financial institutions such as banks, credit companies, and  lenders and are highly sought after currently.

As per the Bureau of Labor Statistics in the U.S., it is estimated that job prospects are going to improve even further in the coming years.

If you want to be a part of a dynamic profession where you can achieve financial independence with a stable work-life balance, now is the time to start preparing for it.

To work as a mortgage loan officer New York you need to fulfill a set of state-specific requirements and obtain your license.

Getting licensed is a crucial and mandatory step in starting a career - if you want to assist borrowers and help them obtain a mortgage, you must obtain your MLO license first.

In this article, we will walk you through the steps you must complete to become a licensed professional and embark on a rewarding professional journey. 

Plus, you will also learn about the job role, responsibilities, and duties of a loan originator so you can prepare for an exciting and successful career.

Choosing a career in NY’s mortgage lending industry

Lenders are financial institutions, credit companies, and banks and borrowers are prospective homeowners and property investors.

Most home buyers seek financing for a big-ticket purchase like a home, especially in a market like New York where real estate is very expensive.

In NY, the demand for residential and commercial real estate continues to grow which in turn boosts the demand for mortgage plans and solutions.

Generally, a mortgage broker is approached by potential clients and borrowers who want to finance their new home purchase.

The broker works with the clients to collect relevant documents, required proofs, and any other important details required for completing the necessary paperwork.

To make the buying process easier and more manageable, mortgage loan officers and brokers help borrowers apply for a mortgage and ensure they get the required financing.

Working as a mortgage broker or loan officer can be incredibly fulfilling for some people, especially if you are good with people and want to help them.

Mortgage officers are expected to be good with numbers and have strong analytical and organizational skills.

A career in the mortgage lending industry in NY can help you achieve an average annual salary of $110K in addition to numerous opportunities and rewarding job perks.

If you have an entrepreneurial spirit, you can even choose to work independently or start your own consulting firm after gaining industry experience and building a network.

There are numerous benefits of choosing this career and you might be surprised to learn about them in detail.

• Promising career choice: 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.
• Good 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 $150K depending on your experience.
• High 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.

On top of this, a career as an MLO in NY also offers exciting job perks such as paid vacation, healthcare, and the opportunity to work remotely.

To reap the benefits and opportunities of this industry, all you need to do is obtain the mortgage loan officer license in NY and you will be on your way to work with clients.

The journey of getting licensed might seem daunting, especially for beginners, but if you follow a structured, step-by-step approach, it is fairly easy and manageable.

However, before we walk you through the exact steps, it is important to learn about the job duties and responsibilities of a loan officer/originator.

What does a mortgage loan officer do

Before committing to a career choice and starting your journey to becoming a licensed professional, it is important to learn about what a loan officer is expected to do.

As a mortgage loan officer, you will do much more than just sign paperwork for approving or rejecting loans.

Loan officers work with financial institutions such as banks, credit unions, private lenders, and mortgage companies.

Your day-to-day job duties and tasks will vary based on your employer. However, your main responsibility is to help clients secure the best mortgage financing and loan options.

Here are some of the tasks and duties you can expect to perform in this job role:

• Meeting and interviewing prospects and potential clients to understand their needs and requirements.
• Gather the necessary paperwork and documentation required for applying for a loan application process.
• Procure financial documents, income proofs, and credit history of the borrowers and organize important information, paperwork, and documentation for application.
• Assessing the eligibility of an individual to obtain a mortgage loan and determining the financial health and creditworthiness of potential clients.
• Guiding clients through the various stages of applying for a mortgage loan and answering their queries.
• Educating clients about the various loan packages, mortgage plans, market trends, repayment terms, legal disclosures, interest rates, and other important terms.
• Negotiate mortgage rates on behalf of clients to ensure that the most suitable loan programs and interest rates are offered that best fit their needs.
• Assisting clients in completing paperwork and ensuring the loan application and required paperwork submitted by borrowers are duly filled and completed.
• Maintaining compliance with the NY laws and mortgage lending industry standards and guidelines.
• Collaborating with other professionals such as appraisers, loan originators, and mortgage brokers to facilitate the process.
• Nurturing relationships and developing a portfolio of financial products and services to attract new clients.

As you can see, MLOs are required to juggle multiple tasks and fulfill a diverse set of duties at work.

After understanding client needs and requirements, a mortgage broker works as a go-to-professional to suggest suitable mortgage plans.

This is why you are expected to complete education and training to get good at the job. In the coming section, we will discuss more about NY pre-license education requirements.

Basic eligibility requirements to become a MLO in NY

Like other states, New York also follows the NMLS (Nationwide Multistate Licensing System) license guidelines and regulations for professionals in the mortgage lending industry.

As per the NMLS, if you are an aspiring professional who wants to obtain an MLO license, you must first prove your eligibility by meeting the minimum statutory requirements.

• You should be at least 18 years of age or older
• You should be a legal resident of the United States or a lawfully residing alien
• You should have a high school diploma or GED equivalent

Note that some employers might require you to have a bachelor's degree in finance, accounting, or business administration.

If you meet the above requirements, you can visit the NMLS website and create your account by registering on the website.

In addition to the above, you will have to meet New York MLO license requirements to obtain your license.

NY Pre-license education requirements for MLO license

As per the NMLS license laws, it is mandatory to complete the minimum level of qualifying education to obtain a license.

The NMLS requires aspiring loan originators and mortgage brokers to complete 20 hours of NMLS-approved pre-license education and training.

This is to ensure that only skilled and knowledgeable professionals are given licensure and allowed to represent the financial interests of consumers.

In addition, you are required to complete 3 hours of NY-specific coursework which must include state laws and regulations. Here are some of the courses you will cover:

• Federal Law and Regulations (3 hours)
• Ethics (including Fair Lending, Consumer Rights, and Fraud Protection (3 hours)
• Standards for Non-Traditional Mortgage Lending (2 hours)
• NY-specific laws and regulations (3 hours)
• Electives related to Mortgage Origination (9 hours)

The purpose of completing pre-license education is to learn about the mortgage lending industry, its core principles, frameworks and standards for professionals.

Note that you have the flexibility to choose your preferred learning medium i.e. you can choose to join a physical, live classroom-based school or enroll in an online mortgage loan originator course NY.

After completing your education, you will be eligible to take the MLO license exam in New York and move further in your licensing journey.

As per the S.A.F.E. (Secure and Fair Enforcement) Act of 2008, it is mandatory for applicants to pass the state license exam to obtain an MLO license.

The test consists of multiple-choice questions based on your pre-license education curriculum and to pass the test, you must score at least 75% or above.

If you complete the above steps successfully, you will be just a few steps away from getting your license.

As part of the New York state mortgage broker license requirements, you must clear federal background verification and criminal history checks.

Aspiring loan originators and mortgage brokers must meet the qualifying standards for honesty, integrity, and truthfulness to work with consumers.

To complete this step, you need to submit an electronic scan of your fingerprints along with the latest credit report to the NMLS for review.

After your documents and license application are approved, you will receive your MLO license within a few weeks.