Your Ultimate Guide to Getting a NY Mortgage Broker’s License
New York is the state where dreams come true and careers thrive in abundance.
The state’s real estate landscape is burgeoning with opportunities for agents and brokers.
Whether you are an aspiring professional or an experienced one, joining the mortgage financing industry in NY can open new avenues for professional growth and success for you.
The number of job openings for mortgage brokers is increasing as the demand for residential and commercial real estate grows.
Since mortgage brokers often play an important part in the property purchase process, the career outlook is
Did you know that the top mortgage brokers in New York make as much as $100K in a year while enjoying the freedom of working on their own schedule?
Plus, there are extra commissions and rewarding perks which makes real estate a lucrative and rewarding career where you can be your own boss.
Being a real estate mortgage broker in NY comes with numerous advantages and if you are on the fence about choosing this profession, now is a good time to start.
Working in the mortgage and finance industry requires specific education, training, and licensing.
If you want to help individuals and companies select, choose, and purchase finance products and services, you must fulfill the pre-licensing requirements.
If you are wondering how to become a mortgage broker in NY, we have put together this detailed guide to answer your questions.
From the required education to the licensing must-haves, you will learn everything you need to know about starting as a mortgage broker in New York.
Who is a Mortgage Broker
A mortgage broker is a licensed professional who is responsible for acting as an intermediary between lenders and borrowers.
Lenders are financial institutions, credit companies and banks and borrowers are prospective homeowners and property investors.
Mortgage brokers perform the important task of helping individuals and clients procure the most suitable mortgage loan options on the basis of their needs and requirements.
A career as a mortgage broker means you will be dealing with clients, working with borrowers, and liaising with industry professionals such as loan originators, real estate brokers, and property appraisers among others.
Generally, mortgage brokers are employed by banks, financial institutions, and credit companies
To become a mortgage broker, you will need to obtain a license along with the required education and skills.
The journey to obtaining a mortgage loan officer license in NY might seem daunting at first, especially if it is going to be your first profession, but with proper planning and a structured approach, you can achieve your goal.
What are the duties of a Mortgage Broker
Before we dive deep into the specifics of mortgage broker license requirements in New York, it’s important for you to understand the duties and responsibilities of the job role.
The key function of any mortgage broker is to help clients secure the best mortgage financing and loan options with suitable terms and interest rates.
Beyond acting as the bridge between lenders and borrowers, the role of a mortgage broker entails multiple tasks and duties at work. These include:
- Gather the necessary paperwork and documentation required for applying for a loan
- Meet and interview with potential clients to understand their needs and requirements
- Procure financial documents, income proofs, and credit history of the borrowers
- Determining the financial health and creditworthiness of potential clients
- Suggest various financial plans, interest rates, and mortgage loan products to clients
- Educating clients about the market trends, repayment terms, legal disclosures
- Advise clients on the most suitable mortgage financing plans to suit their needs
- Negotiate mortgage terms and interest rates with banks and lenders for clients
- Guide clients through various stages of the loan processes
- Assist individuals in completing the paperwork required for the loan process
- Ensure loan application and documentation are compliant with state and federal laws
- Liaison with industry professionals such as appraisers, loan originators, and agents
- Researching about the market trends and industry updates
As a mortgage broker in NY, your day-to-day job responsibilities will vary depending on your employer.
However, mortgage brokers are required to juggle multiple tasks and fulfill a range of duties at work.
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.
Post the evaluation of the clients’ needs and their financing requirements, the mortgage broker continues to estimate and suggest the most suitable financing plans using various tools and techniques such as determining the loan-to-value ratio.
After presenting the different loan plans, a mortgage broker works on behalf of their clients to complete the paperwork and ensure their application is compliant with the rules and laws.
If everything works as planned, the mortgage amount is approved and disbursed to the borrower and the mortgage broker collects their respective fee or commission to originate the loan.
Mortgage Broker Licensing Requirements in NY
Working as a mortgage broker requires a combination of education, skill, and licensure.
In order to be legally able to assist individuals in the matter of money and finances, it is important that brokers complete the required education and licensing requirements.
Like most states, New York also follows the licensing standards and guidelines established by the Nationwide Multistate Licensing System (NMLS) and processes all applications through it.
NMLS is the centralized system used for storing and managing the database of all licensed professionals, firms, and regulatory agencies in the mortgage and finance industry.
Let’s discuss the mortgage broker license requirements in New York in detail next.
Preliminary Eligibility Requirements
To start with the basic statutory requirements for qualifying for a mortgage broker license, every applicant must:
- Be a minimum of 18 years of age or older
- Be a legal resident of the state of NY or a lawfully admitted alien
- Have a valid social security number with a clean credit history
Educational Requirements
At a minimum, you must have a high school diploma in education or a GED equivalent to be eligible for applying for a mortgage broker’s license.
Additionally, having a bachelor’s degree in finance, accounting or business administration is a huge plus.
Especially because mortgage brokers work at the intersection of finance, lending, and accounting while dealing with businesses, entities, and financial institutions.
Next comes the mandatory pre-licensing education which is required to apply for a mortgage broker license in NY.
As per the New York Department of State, all applicants must complete 20 hours of NMLS-approved coursework which must cover a minimum of 3 hours of state-specific laws and regulations.
The S.A.F.E. (Secure and Fair Enforcement) Act of 2008 mandates all applicants to complete NMLS SAFE mortgage licensing education to learn the fundamentals of mortgage lending, finance, and the expected standards set for brokers.
To obtain your MLO license in New York, you must choose an NMLS-approved education provider and complete your education.
Applicants are free to choose their preferred medium of learning i.e. you can choose to join an in-person, classroom environment or enroll in an online, virtual course and learn from anywhere.
What is the course curriculum for a MLO license
Education is the foundation upon which successful and long-lasting careers are built.
To start and succeed as a mortgage broker, you must equip yourself with the required knowledge and understanding of the industry, its laws, rules, regulations, and best practices.
As an aspiring NY mortgage broker, you are required to complete the 20 hours of the NY SAFE Mortgage Loan Originator course curriculum which must include:
- 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)
- Electives related to Mortgage Origination (9 hours)
- NY-specific laws and regulations (3 hours)
It is important that you choose an NMLS-approved education provider like a real estate school, college, or online course to complete your education.
Many aspiring mortgage brokers think that education is only required before getting your license.
However, even after you obtain your mortgage broker license, you will still have to adhere to the post-licensing education requirements for licensed professionals.
As a New York licensed mortgage broker, you must complete additional continuing education to successfully renew your license and fulfill the NMLS guidelines for mortgage brokers.
In order to meet the latest standards and guidelines for your profession, post-licensing continuing education is a must.
The SAFE Act requires all active licensees to complete 8 hours of continuing education every year which should include:
- Federal Laws and Regulations (3 hours)
- Ethics (including Fair Lending, Consumer Rights and Protection, Fraud) (2 hours)
- Non-traditional mortgage lending (2 hours)
- General elective course related to mortgage origination (1 hour)
In some states, mortgage brokers might be required to complete additional courses as part of their pre and post-licensing education requirements.
Benefits of working as a mortgage broker in New York
If you are someone with an analytical bent of mind and a desire to help people, then working as a mortgage broker can be an emotionally fulfilling and financially rewarding experience.
In New York, the demand for residential and commercial real estate continues to increase which means the need for mortgage financing also grows as more people want to buy and invest.
Most home buyers seek financing for a big-ticket purchase like a home.
To help them, mortgage brokers are sought-after to ensure borrowers get the required financing and loan they need.
Working as a mortgage broker in NY will be a stable and thriving career path for anyone who can complete the educational and licensing requirements for the job.
Your day-to-day responsibilities will vary, making the job less monotonous. Plus, you will get opportunities to liaise with industry professionals and grow your network.
You will mostly focus on getting mortgage financing approved for individuals and companies by working on behalf of banks and lenders.
With an estimated annual salary of $110K plus numerous opportunities for earning commissions, there is a lot of earning potential and exciting perks you can enjoy as a mortgage broker in NY.
Another advantage of choosing this profession is the healthy work-life balance. You can choose to set your own work hours.
In comparison to the target-based, sales-oriented job profiles of a real estate agent or a broker, a mortgage broker enjoys a relaxed, flexible job profile.
Plus, the future prospects of the role are also good as you can grow to start your own consulting firm or work independently.