What it takes to become a licensed mortgage loan officer in Georgia
Working as a mortgage loan officer might just be the most in-demand and sought-after career path in 2024.
The job offers a plethora of exciting benefits and growth opportunities.
Be it a six-figure salary and the additional commissions or the flexibility to work remotely from anywhere, there's a lot to love about working in the mortgage lending industry.
If you are a resident of Georgia and want to explore the possibilities of working as a mortgage loan officer, this article is for you.
Did you know that Georgia is one of the hottest real estate markets in the country where home prices have been growing steadily?
The demand for residential and commercial real estate in Georgia has led to a rise in the number of individuals seeking mortgage financing to make their dream purchase.
This has led to a rise in the number of job openings for mortgage loan officers and brokers who can work with people to help them find an ideal and practical financing plan.
If you want to work at the intersection of finance and real estate and help people achieve their home ownership dreams, a career as a mortgage loan officer might just be for you.
Experienced mortgage brokers in Georgia can easily make around $100K and above in annual income.
The high compensation and income are not the only attractive aspects of this job role.
There also exist opportunities to make thousands of dollars in commissions all while working in a dynamic, exciting industry with a steady job outlook and growing job opportunities.
If this sounds like your professional dream come true, you will be happy to learn that it can be achieved by following a step-by-step process.
All you need to start working in the industry is a license and you can build a thriving career.
In this guide, we are going to give you a detailed step-by-step breakdown of the entire process of how to become a mortgage broker in Georgia.
This article covers all key aspects - from educational curriculum and exam tips to the licensing requirements and ideal skills to help you prepare for your goal with confidence.
Mortgage Loan Officers vs Mortgage Loan Brokers
Mortgage loan officers are skilled licensed professionals who act as intermediaries between borrowers and lenders.
Lenders can be financial institutions, credit companies, and banks whereas borrowers can be used to refer to individuals or companies.
A mortgage loan officer generally works on behalf of lenders to help borrowers find the most suitable mortgage loan options.
Many aspiring professionals often get confused between a mortgage loan officer and a mortgage broker.
Although both job roles work to facilitate the best loan and mortgage financing options for homebuyers, there is an important distinction between the two.
Mortgage loan officers (MLOs) work with or for financial institutions, credit companies and banks, or any other mortgage lender.
On the other hand, mortgage brokers work independently as consultants for borrowers who want to secure financing. They might represent more than one lender or work with more than one borrower.
Now whether you want to work as a loan officer or a broker, you will have to complete the same journey and fulfill the exact same requirements.
From a borrower’s point of view, they can choose to work directly with a mortgage loan officer or involve the services of a mortgage broker to facilitate the financing process.
Irrespective of your career path of choice, you must first and foremost obtain a license to practice your profession.
For the sake of brevity, this article will cover details and information related to how to become a mortgage loan officer in GA.
The Job Role and Responsibilities of a Mortgage Loan Officer
You might be curious and excited to learn about how to obtain your mortgage loan officer license in Georgia but before you get there, it’s important to take a step back and understand the job profile better.
As a mortgage loan officer, your day-to-day job responsibilities will encompass a variety of tasks and duties. Some of the prominent ones are as follows:
- Gather all the required information including the financial documents, credit reports, income statements, and taxation papers from potential clients
- Evaluate the eligibility and credit worthiness of potential clients for processing a mortgage loan
- Conduct research via meetings and interviews to understand the client’s needs
- Educate clients about the various loan options, payment plans, interest rates, financing terms, and other fees
- Assist clients in completing the required paperwork for submitting the loan application
- Educate clients about the industry rules, regulations and laws, and answer any of their questions
- Guide clients in choosing the right mortgage financing product, plan, or service to best suit their needs and requirements
- Negotiate payment plans, interest rates, fees, and loan terms on behalf of the clients
- Liaison with loan processors, underwriters, appraisers, and home inspectors to facilitate the mortgage loan application process
- Help clients in resolve any issues or roadblocks before, during, or after their loan application process
- Provide constant updates regarding the progress and key milestones during or after the mortgage application process
- Ensure compliance with all legal, financial, and industry-specific laws and regulations
- Building and nurturing short- and long-term relationships with your clients and generating referral opportunities
- Research the industry developments, emerging trends, and latest updates in the mortgage lending industry
As evident, a mortgage loan officer or broker plays a crucial role in the home-buying process.
Not only do MLOs help save time and simplify a lot of tasks, but they also make the financing process convenient for individuals.
By helping clients navigate the complexities of applying for and securing a loan, mortgage loan officers and brokers provide their expertise and knowledge.
The job of a mortgage broker may vary depending on external factors however their objective is to help their clients achieve their home ownership goals.
Licensing Requirements for becoming a Mortgage Loan Officer in Georgia
Getting your license in Georgia can be a rewarding and challenging experience, moreover, it is an important professional move that will benefit your career in a significant way.
As a loan officer, you will be dealing with financial and personal information at work all while ensuring legal and regulatory compliance with loan application and paperwork.
To safeguard the interests of consumers and protect their rights, the regulatory authority for loan officers and mortgage brokers requires all applicants to qualify for a license.
One of the most important requirements for obtaining a Georgia mortgage loan officer license is to complete mandatory pre-licensing education.
Obtaining an MLO license means fulfilling the NMLS (Nationwide Multistate Licensing System) licensing requirements which can be categorized as follows.
1.Basic Requirements
To qualify for the job, you must meet the basic statutory requirements which require all applicants to be at least 18 years of age or older and be a legal resident of Georgia.
2. Educational and Examination Requirements
As per the NMLS, all applicants must have a high school diploma in education or GED equivalent to be eligible for applying for a MLO license.
Next, each applicant must complete NMLS pre-licensure education to be eligible for taking the SAFE test for MLO licensing.
Educational coursework and curriculum are administered and regulated by the NMLS and you must complete the coursework through the NMLS system only.
Many aspiring professionals often overlook the value of pre-licensing education however to truly learn about the industry rules, laws, and regulations, getting yourself educated is critical.
Pre-licensing courses are formulated to give you a detailed overview of fundamental topics and subjects such as:
- Non-traditional Mortgage Lending
- Ethics, Consumer Rights, and Fair Practices
- State and Federal Laws and Regulations
Completing the coursework is not only mandatory for all applicants but it is the foundation upon which you can build a successful career.
In Georgia, you are required to complete 20 hours of pre-licensing coursework from a NMLS approved education provider.
In some cases, you might be required to take an additional 3 hours of state-specific laws and regulations for MLOs in Georgia.
It is recommended that you check the same with the Georgia NMLS for the most up-to-date information regarding the same.
You can choose to join a real estate classroom program or enroll in an online mortgage loan officer pre-licensing class in Georgia to complete your education.
Many students prefer the convenience and flexibility offered by online real estate classes for MLO licenses.
Typically, completing pre-licensing education generally costs between $200 to $600 depending on various factors such as – the experience of the course provider, type of study package, course format, and method of content delivery among others.
After you have completed the educational requirements, you can proceed to take the SAFE (Secure and Fair Enforcement) mortgage loan officer test in Georgia.
The test is formulated to test your knowledge and understanding of the mortgage lending industry, its principles, processes, and regulations.
It consists of 115 multiple choice questions and you will get 190 minutes to tackle them. To clear the test, you must score at least 75 percent or above.
Passing the GA SAFE test is mandatory for all applicants who want to earn their MLO license in Georgia.
Many applicants presume that after getting their MLO license, there is no need for education and learning.
However, the SAFE Act requires all license holders to complete additional continuing education to advance in their careers.
By completing continuing education courses, you will be eligible to renew your MLO license in Georgia annually.
3. Background Verification Requirements
The SAFE Act of 2008 was established to regulate the education, licensing, and activities of mortgage loan officers and brokers.
This law was formulated to protect the rights and interests of consumers and to achieve its mission, it has established a set of rules and standards of licensing in the mortgage lending and finance industry.
One of the key requirements of the SAFE Act is to complete background verification and criminal identity check.
This means you must allow the state of Georgia and the Federal Bureau of Investigation to conduct identity verification and run a criminal background checks.
4. Employer Sponsorship
After completing the qualification, educational, examination, and background verification, you will receive your mortgage loan originator license in Georgia.
However, to activate your license, you must find employer sponsorship from a financial institution like a bank or a credit company.
This is a mandatory requirement by the NMLS to ensure all newly licensed professionals who want to start practicing in Georgia are trained in the industry practices and processes.