Your Guide to Becoming a Part-time Mortgage Loan Officer
If you are seeking an exciting and rewarding career on the side that can generate additional income for you, then working as a mortgage loan officer might be a good fit.
Mortgage loan officer jobs are in demand as the real estate industry continues to post steady growth and stable demand.
MLOs are employed by banks, credit unions, and financial companies that want to provide mortgage loans and related services to borrowers.
Loan officers are sought-after professionals and an increase in job profiles have emerged as one of the most satisfying career choices in the U.S.
Did you know that you do not need a bachelor’s degree to become a licensed mortgage loan officer?
The best bit is that you can earn a six-figure salary in this profession while enjoying a flexible work schedule due to the remote and hybrid nature of the job profile.
Some MLOs earn a fixed salary based on an hourly basis whereas many choose to work on a commission basis to generate additional income.
If you are keen to explore the path of working as a part-time mortgage loan officer in the U.S., then this article will answer your questions in detail.
Although the qualifying requirements vary from state to state, there are certain eligibility requirements that are standard for aspiring loan officers.
The most important aspect of becoming a MLO is earning your license first as you will not be able to find jobs without one.
All you need to get started is to complete the mandatory MLO license course from an NMLS-approved education provider and you will be ready to embark on a professional career.
Let us walk you through the various aspects of starting a career in the mortgage loan industry and navigating through the various requirements and guidelines.
Plus we will also talk about the demands and challenges of working as a part-time MLO to help you plan and prepare better for your career.
Understanding the Role of a Mortgage Loan Officer
Before you embark on the journey to become a licensed mortgage loan officer in the U.S., it is important to understand what the job role and profile entails.
MLOs are primarily responsible for acting as the bridge between lenders and borrowers and help facilitate the transaction process.
For most homebuyers, mortgage financing is an integral part of achieving their home ownership dreams. Without a loan, it would be difficult for many buyers to finance their homes.
To assist potential buyers, it will be your responsibility to help your clients to understand the various financial products and loan services.
From completing and submitting the loan application to evaluating the various loan plans, options, interest rates, and payment terms, you will be the single point of contact for buyers.
You will also be responsible for liaising with other lending and banking professionals such as agents, underwriters, and appraisers to smoothen and expedite the loan process.
In addition to helping homebuyers and borrowers, MLOs also play an important role in helping prevent fraudulent acts related to mortgage financing and foreclosures.
Since mortgage loan officers work at the intersection of finance and mortgage industries, it is critical to obtain a mortgage loan originator license to be eligible to work with clients on behalf of financial institutions.
The Job Duties of a Part-Time Loan Officer
Whether you decide to start as a part-time or as a full-time loan officer, your day-to-day duties and responsibilities will pretty much be similar.
Although your exact job duties will vary depending on your employer, here is a list of some of the most common responsibilities you can expect to perform as a part-time loan officer:
Although that is the key part of the job there are some additional responsibilities including:
- Collecting all the required documents for loan application
- Evaluating lender’s credit score and history to assess their worthiness
- Meeting with prospective clients and understanding their loan requirements
- Assisting clients in choosing the most suitable loan products and plans
- Coordinating with underwriters and appraisers to identify risks
- Ensuring compliance with state and federal authorities for loan documentation
- Updating records of loan transactions and financial documents
- Offering personalized lending packages to clients based on their needs
- Creating partnerships and alliances with developers, realtors, and brokers
Clearly, there are numerous duties and tasks in the day of a mortgage loan officer.
Even if you are working as a part-time MLO, you can expect to share similar responsibilities at work.
Job Market for Part-Time Mortgage Loan Officers
The real estate industry is vast and is filled with numerous roles and job opportunities for skilled loan officers.
Mortgage loan officers are a key part of the mortgage financing industry and there has been a steady demand for licensed professionals in the last few years.
With the real estate industry bouncing back to reach pre-pandemic demand, the number of homebuyers is also increasing.
The demand for mortgage financing remains high and the job outlook is positively poised for growth.
This growth has fueled the need for financing and mortgage loans for borrowers seeking guidance and assistance in choosing the right plan and services.
According to the U.S. Bureau of Labor Statistics, the job market for MLOs is projected to grow by around 3 percent between 2022 and 2032.
This is a positive indicator of the rising opportunities for aspiring part-time loan officers and now could be a good time to start preparing for a rewarding side hustle.
Qualifying Requirements for a Part-time Mortgage Loan Officer
Ready to work as a part-time mortgage loan officer in the United States?
Although you do not need a bachelor’s degree or a graduate degree to get started, you still have to fulfill certain qualifying requirements.
The first and foremost step is to register yourself with the National Mortgage Licensing Service (NMLS) and create your unique NMLS ID.
NMLS is a universal database of all licensed loan officers, financial institutions, and mortgage
providers in the country.
According to the qualifying requirements established by the NMLS, every applicant must
- Be at least 18 years of age or older
- Be a legal resident of the United States or a lawfully admitted alien
- Have a high school diploma or GED equivalent
It is important to note that every state has its specific set of education requirements which must be fulfilled before you can register with the NMLS.
Thus, you should check with your state’s local authority to stay updated on the most accurate and up-to-date licensing requirements.
Once you have fulfilled the statutory requirements, the next step is to meet the educational requirements needed for the job of a part-time mortgage loan officer.
The first step is to complete 20 hours of mortgage loan originator course which must include the following courses:
- Federal law and regulations (3 hours)
- Ethics and associated fields (3 hours)
- Lending standards (2 hours)
- Mortgage origination (20 hours)
In addition to the above, your state’s local authority might require you to complete additional courses as part of the qualifying education requirements.
After you have completed the mandatory pre-licensing education, the next step is to take the licensing exam.
Also known as the SAFE MLO test, you must score at least 75% or above to successfully clear the exam.
Regarding the SAFE MLO exam, it is important to note that different states might have state-specific rules and guidelines.
Hence, it is recommended to check with your state’s governing authority for the most updated information.
Required Skills to Become a Part-time Mortgage Loan Officer
Completing a 20-hour mortgage licensing course from an NMLS-approved education provider will suffice to qualify for taking the SAFE exam, yet you will need some additional skills for success in this career.
Here are some required skills that will help you advance as a part-time MLO in the U.S.
- Financial Knowledge: Having a strong grasp of financial principles and banking concepts will help you assist your clients in a professional and knowledgeable way.
To provide guidance to your clients regarding the right loan plan and terms, you must be aware of mortgage products, interest rates, payment plans, financial products, and services.
Knowing financial concepts and having a strong acumen in accounting, mathematics, and statistics will help you get far in your career.
- Attention to Detail: Working as a part-time MLO will require you to deal with a large amount of information from various sources.
Be it the paperwork and documentation or the financial transactions and credit reports, you will be working with copious amounts of information every day.
To do a good job, you will need strong attention to detail and a keen eye for the fine print while keeping things organized and structured.
Paying attention to important facts, figures, numbers, and terms is a must to avoid errors or any lapse in judgment.
- Time Management: A day in the life of a part-time mortgage loan officer requires juggling multiple tasks and duties in a limited amount of time.
To excel at work and do a good job, you must learn how to work through various responsibilities while adhering to timelines.
Since you will be meeting clients, working with underwriters, and other stakeholders while completing additional tasks, it is important to have a strong time management ethic in place.
- Interpersonal Skills: The job of an MLO requires you to guide and assist potential clients and borrowers through various stages of the loan process.
Having the knowledge is one thing but being able to communicate it in a simple, easy-to-understand way is the key to generating trust and confidence with clients.
In order to explain specific financial concepts and industry terms in layman’s terms to borrowers, you will need to cultivate strong communication and interpersonal skills.
Building successful relationships with your clients is based on how well you are able to understand their needs and suggest suitable financial solutions.
Advantages of working as a Part-time MLO
Becoming a part-time mortgage loan officer can be an incredibly exciting, challenging, and fulfilling career experience.
Although the profession requires a certain level of commitment and dedication, it is well worth the effort due to the numerous advantages it offers.
Here are some of the pros of finding part-time employment as a loan officer in the U.S.
- High earning potential: MLOs can work as much as they want and earn without any income cap or restrictions.
- Greater work-life flexibility: As an MLO, you can choose to define your working hours on the basis of your preferences and priorities.
- Low barrier to entry: To become a licensed mortgage loan officer, you do not need a bachelor’s degree to start with.
- In-demand career: MLOs are highly sought after in real estate and other industries making it a future-proof profession.
Ready to start your career as a mortgage loan officer
To start with, all you need to do is complete mortgage loan originator license courses and get licensed.
The mortgage industry is on the rise thanks to the growing demand for housing in the U.S.
Finding part-time mortgage loan officer jobs is a good way to enter the industry and experience the financial benefits it offers, among various other growth opportunities.