How to Become a Licensed Underwriter in Connecticut

You must earn a license to work in Connecticut as an independent contractor underwriter.

The federal SAFE (Secure and Fair Enforcement for Mortgage) Act requires underwriters working as independent contractors in Connecticut and all other states to be licensed. Underwriters are responsible for evaluating the creditworthiness of clients, and conducting financial analyses and other risk assessments. You need to take a test to earn your license. To operate an individual underwriting business, you need a Connecticut Mortgage Loan Originator license. You'll need to complete specific coursework, pass a national and state SAFE Act test, pass a background check and authorize a credit check. The total cost was $330 in 2011.

Instructions

1. Review the issuance standards to ensure you meet all requirements in Connecticut. You can find the current requirements through the Nationwide Mortgage Licensing System, which issues the test. Applicants cannot have had a mortgage loan originator license revoked, unless the revocation was overturned. You must not have any felonies in the seven years prior to your application submission date. You must also have demonstrated financial responsibility and submit your application without misinformation.

2. Authorize the issuance of your credit report by logging into the Nationwide Mortgage Licensing System Web site. Select "Filing" in the top-right corner of the page, and then click the "Individual" menu. Click "Create New Filing."

3. Complete at least 20 hours of pre-licensure coursework through the Nationwide Mortgage Licensing System. Complete three hours each in federal law and ethics, two hours in non-traditional mortgage lending and at least 12 hours of electives. Two 12-hour courses are offered, including "SAFE General Mortgage Knowledge" and "SAFE Back to Basics: Anatomy of Mortgage Lending." No electives are offered specific to Connecticut.

4. Take the national and state components of the Mortgage Loan Originator SAFE Test. You can take the test through the Nationwide Mortgage Licensing System. You must pass both components to receive your license. If you fail one or both sections, you must wait 30 days to re-take the test. After the fourth attempt, you must wait 180 days to take the test again.

5. Complete a criminal background check.

Tips & Warnings

• Download the Mortgage Loan Originator Testing Handbook, which will help you prepare for the test, from the Nationwide Mortgage Licensing System Web site.

• Depending on the nature of your underwriting business, you may not be required to be licensed. Check the NMLS website to find out if you qualify for an exception.

References

• NMLS: State Licensing Requirements; Connecticut
• FFIEC: Secure and Fair Enforcement for Mortgage Licensing Act
• NMLS: New Application Checklist; Connecticut Mortgage Loan Originator License
• Bureau of Labor Statistics: Occupational Handbook 2010-2011; Loan Officers
• NMLS: Pre-Licensure Education Courses
• NMLS: Retaking a Failed Test