How to Become a Loan Officer

Many believe you must have a bachelor’s degree in finance, accounting or economics to start out as a loan officer however this isn’t the case. Of course it does not hurt to have these designations as it might give you a leg up on your competition, but you can find people in the business that simply have high school diplomas, so having a bachelor isn’t mandatory.

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) established requirements for the licensing and registration of Mortgage Loan Originators (MLOs,) also known as loan officers. While MLOs will need to become licensed (exceptions include those working for traditional banks and credit unions,) they will all need to be registered with the NMLS.

General guidelines for becoming a state-licensed loan officer will consist of:

• Criminal Background Check – Fingerprints will need to be submitted through NMLS for an FBI criminal background check.
• Education – Fulfillment of pre-license education will need to be accomplished (which usually consists of at least 20 hours of specific course work.) 오피
• Testing -National and State components of the SAFE MLO Test must be passed (dependent upon your States election.)
• Credit Report – Applicants will have a credit report administered on them through NMLS.

The National Mortgage Licensing System, (NMLS) upholds education and licensing standards for the country. However it is up to the specific States to choose what they would like their licensing requirements to be.

The Job classification for a mortgage officer will differ dependent upon the type of position one is applying for.

For example, there are two types of MLOs, residential officers and commercial officers. Each conduct the same types of duties but on different types of properties. A residential officer assists a borrower with acquiring, or refinancing a home. Whereas a commercial officer assists a borrower in purchasing commercial real estate (office buildings, department stores, etc.) that will be used solely for business purposes.

Financial institutions employ most loan officers, some examples are, banks, mortgage lenders and credit unions. While some officers work at their employer’s location, many often spend their time out of the office environment marketing and advertising their services to real estate professionals and prospective borrowers.



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