Requirements to Be a Commercial Loan Broker

There are specific requirements you must meet in order to be a commercial loan broker.

Commercial loan brokers are one of the most regulated fields of the real estate industry. There are very specific requirements you must meet to become a certified commercial loan broker in the state which you choose to live and work.

Who Governs the Commercial Loan Broker?

Commercial loan brokers are governed by the real estate, business licensing or similar departments in the state where they conduct business. Each state has slightly different guidelines, though all states require applicants pass a state-sponsored broker test, meet a minimum education level and have a certain amount of work experience.

Becoming a Broker

All states have well-established guidelines for real estate licensing. To become a commercial loan broker you must first attain the title of real estate broker, which is usually one step higher than real estate agents or salespeople on the ladder of licensing in most real estate departments.

Work Experience

If you choose to become a real estate salesperson first, most states require you to have at least two years of work experience under a licensed commercial loan broker before you can become a commercial loan broker yourself. Other states allow you to skip the salesperson stage and go straight to the broker designation. To do so, you must meet certain educational requirements.

Education

Due to their course work and knowledge of contracts, licensed attorneys can skip all educational requirements and apply for their broker license directly in most states. They will be required to pass the state-sponsored broker test. From there, they can apply to receive the commercial loan broker designation and no additional training is required.

Those with four-year college degrees will be able to skip the real estate salesperson level, but they will have to take the required state-sponsored broker education courses, usually 90 to 120 hours, and then pass the state broker test.

Those without a college degree can still skip to the broker level, but they will have to show the real estate department that they have been working full time in a related real estate field with experience relating brokering commercial loans.

Testing

Each state has a test that must be passed to become a broker, and usually another test that must be passed to get the commercial loan broker designation. The broker test is comprised of general real estate knowledge and state-specific laws. The commercial loan broker test is more specialized and relates to the broker's knowledge of mortgages and commercial real estate applications.

References

• Washington Department of Financial Institutions - Loan Originators