Your Guide to Obtaining a Mortgage License in Any State
A career as a mortgage loan officer offers endless possibilities for professional growth.
Be it the high earning potential or the flexible work schedule, there is a lot of potential for building a successful career.
Mortgage loan officers play a critical role in helping clients buy and lease their desired property. Be it commercial or residential, mortgage brokers are sought after across multiple sectors of real estate.
As a mortgage loan officer, you will act as the bridge between buyers and lenders to help your clients achieve mortgage financing to match their needs and requirements.
If you are an aspiring or experienced mortgage loan officer who wants to maximize your career opportunities, you’re in for good news.
You can apply for a mortgage broker license in multiple states and expand your client base significantly.
This can be a game changer for you if you are seeking more income opportunities and want to grow your career beyond the boundaries of your state.
If you are excited to increase your earnings and expand your professional network, you can apply for a mortgage loan originator license in multiple states.
Although the prospect of obtaining a multi-state MLO license is exciting, it is a process that requires careful consideration and planning.
You will have to go through state-specific regulations and fulfill guidelines unique to different states.
As time-consuming and effort-intensive the process might be, it is certainly worth pursuing as it will open up new avenues for growth in your real estate career.
In this article, we are going to cover how you can get your MLO license in multiple states and the steps required to complete the process.
Plus, we will also cover the benefits of having an MLO license in multiple states and how it can help you advance in your career.
What is a Mortgage Loan Originator License
Before we get into the details of multi-state licensing, let’s start by understanding the basics first.
A mortgage loan originator license is mandatory to be able to work with financial institutions, lenders, and banks to provide financing to borrowers.
A mortgage originator license is a legal badge of your knowledge, skills, and education required to provide financial guidance to clients.
A MLO license will be issued to you by the National Mortgage Licensing Service (NMLS) but you will need to obtain it from your home state.
According to the National Mortgage Licensing Service (NMLS), every applicant must meet a set of eligibility requirements listed below:
- Be at least 18 years of age or older
- Have a high school diploma or related education with subjects like finance and math
- Be a legal resident of the United States or a lawfully admitted resident
If you meet the above eligibility requirements, you must register yourself with the National Mortgage Licensing Service (NMLS) next.
The NMLS requires every applicant to complete 20 hours of pre-licensing education to equip themselves with the knowledge and skills to work as a mortgage officer.
The 20 hours of coursework covers fundamental topics and subjects such as:
- Federal Laws and Regulations (2 hours)
- Lending standards and guidelines (2 hours)
- Fair Practices, Fraud, and Ethics in Lending (3 hours)
- Mortgage origination related information (12 hours)
Additionally, you are expected to have a high school diploma or GED with subjects like math and finance.
Once you have successfully completed and fulfilled the educational qualifications, you can move on to the next step of the process which is taking the NMLS Federal MLO examination.
The exam consists of 125 questions and you will get 180 minutes to complete the test. To clear the exam, you must score at least 75 percent or above.
To boost their chances of success, many applicants enroll in an MLO license course by an NMLS-approved education provider.
Steps to obtain an MLO license in multiple states
Okay now that you know what it takes to become a licensed mortgage loan officer in your home state, let us walk you through the steps for obtaining a multi-state applicable license.
Did you know that you can practically obtain a mortgage loan originator license in almost all 50 states?
This is possible due to the Multistate Licensing Agreement Program (MMLA) which is designed to streamline the various licensing and procedural requirements among state-specific regulatory authorities.
In some cases, the requirements vary by state whereas some states allow no additional requirements or regulations. It depends on the participating states and their agreement with the other state’s agency.
Let’s take a look at the steps involved in obtaining a multi-state MLO license:
Step 1:
The first step is to understand whether your desired state has any additional requirements for education and certification that need to be fulfilled.
These requirements fall under the MLO Pre-Licensing Education requirements and include completing 20 hours of pre-licensing education and 8 hours of continuing education.
However, there are some states which do not require completion of any additional educational coursework. Some of the popular real estate markets include:
- Connecticut
- California
- Georgia
- Louisiana
- Massachusetts
- Michigan
- Illinois
- North Carolina
- South Carolina
- Texas
- Washington
- Ohio
In addition to the above, there are many other states where your existing MLO license educational qualifications will suffice.
It is recommended to check the most updated information from your local state regulator.
Step 2:
After you have successfully met the educational requirements established by the participating state, the next step is to fulfill the phase two requirements.
These include completing company information, criminal checks, background verification, fingerprinting, and surety bond requirements.
Step 3:
Once you have completed the verification documentation and paperwork, the next step is to submit your licensing application.
To do so, you need to visit the NMLS online portal and register or log in with your unique NMLS identification number.
You will also have to pay the fee applicable for processing your application and any other state-specific charges.
Step 4:
Post the implementation of the SAFE Act in 2008, it has become mandatory for all NMLS license holders to complete additional continuing education to maintain their licensure.
If you are ready to obtain multi-state licenses, you might have to complete additional courses based on state-specific educational guidelines.
Generally, it only takes a couple of hours of CE to fulfill state-specific criteria.
To accomplish this, you can enroll in mortgage loan originator license courses from a state-approved education provider.
The plus side of completing additional courses is multifold - firstly, it will help you meet the continuing education requirements for each state you want to work in and secondly, it will give your career a continuous boost with up-to-date knowledge and skills.
Advantages of a Multi-State NMLS license
Before you enroll in a mortgage licensing course, you might want to learn about the various advantages of having multiple MLO licenses across different states.
From a professional standpoint, there are several important benefits of having multiple MLO licenses and some of the important ones are discussed below.
- You will significantly improve your business opportunities
- Your professional network will dramatically expand
- You will be able to cater to a broader, bigger market segment
- You will be able to diversify your clientele across different states
- Your earning potential will improve significantly
- You will gain opportunities to grow your knowledge and skills
- You will future-proof your career against demographic limitations or shifts
- You will become more employable compared to single-state MLOs
As evident, there are numerous advantages to becoming a multi-state loan officer. However, not everything is rosy as there are certain cons involved in the journey as well.
Disadvantages of getting a multi-state NMLS license
Getting a mortgage originator license in multiple states is a lucrative and rewarding career move, however, there are certain disadvantages associated with it. These are:
- You will have to invest additional time in completing continuing education courses
- You must always adhere to state-specific guidelines and regulations
- You will have to go through multiple steps for licensure and submit documentation
- You might find it difficult to cope with the distance requirements
- You will have to furnish additional surety bonds as part of the licensing process
- You might find it overwhelming to manage time and work among multiple states
Although getting an MLO license in multiple states might seem difficult and daunting at first, it is certainly an achievable goal worth pursuing.