How to Become a Mortgage Loan Originator

Pass your state's guidelines before you take a home mortgage application.

Mortgage loan officers can earn incomes significantly higher than the national average income. Some loan officers make above $100,000 per year. A loan officer can work for a large international bank or for a small local lender. Some loan officers are self-employed and work out of a small or even home-based office. Regardless of what type of company you work for, you need to know and follow the laws regulating loan officers and mortgage lending in your state.

Instructions

1. Call your state's secretary of state or banking commission and find out what agency regulates mortgage loan officers. Each state regulates loan officers differently, and it's your responsibility to know the laws in the states you wish to lend in. You may be able to download the loan officer requirements from each state's website. You can also check with your state's mortgage broker association for help.

2. Attend the required prelicensing training. Your state may require a specific number of credit hours before you apply for your license. You may be able to complete these courses online or at a specific school. Obtain a certificate of completion to prove your successful attendance of the courses.

3. Schedule the exam once you have completed your required schooling. Many exams must be taken at specific testing sites while being monitored by an impartial third party. Pay for your exam before or at the time of the exam as required. Often these exams last for three hours and may include specifics on federal mortgage guidelines and state-specific guidelines. You must successfully pass all of the required exams for each state you are licensed in.

4. Provide proof of your successful completion of all schooling and exams to the state regulatory agency. Your state may also require background checks by state or federal agencies or have specific bond requirements. Provide all of the required items along with your application to the regulatory agency. Double-check if you can start working once you submit all of your documentation or if you have to wait until you receive your actual license. Each state's guidelines differ on this.

5. Know your state's continuing education requirements. Many state licenses must be renewed every two or three years, and require you to complete continuing education to be eligible for renewal. Ask for continuing education certificates for any future training sessions you attend to help satisfy this requirement.

Tips & Warnings

• Find a mentor to help you build your career as a loan officer. Often loan officers work primarily on commission although some companies provide salaries as part of their compensation package. A mentor who has built a successful career can help you build a steady stream of clients who are buying or refinancing homes.

References

• Mortgage News Daily: Mortgage Broker Licensing-Protecting Consumers with Mortgage License Requirements
• HUD:Office of Risk Management and Regulator Affairs
• State of Mississippi, Mississippi S.A.F.E. Mortgage Licensing Act of 2009