Utah Mortgage Broker Requirements

Prospective mortgage brokers in Utah must apply for licensing as a mortgage originator because they negotiate mortgage loan rates and solicit loans from residential borrowers. Both state and federal laws govern the licensing of mortgage originators in Utah, meaning that all prospective mortgage brokers in the state must gain two different credentials before working in the field.

Types of Licenses

A federal law, the S.A.F.E. Mortgage Licensing Act of 2008, requires that all mortgage originators in the United States become registered through the Nationwide Mortgage Licensing System & Registry. Utah mortgage brokers must participate in this registration program. They must also gain a state mortgage originator license through the Utah Division of Real Estate. Utah has streamlined the process, allowing prospective brokers to apply for both credentials by creating an account at the Nationwide Mortgage Licensing System & Registry website. Brokers' employers must also register at the NMLS website and state that they sponsor the brokers' applications.

Education

To qualify for the national registry, prospective Utah mortgage brokers must complete 20 hours of coursework approved by the NMLS. The training must include three hours of federal law and regulations, three hours on ethics and two hours on nontraditional mortgages, as well as 12 hours of elective courses. Applicants must gain the training from an NMLS-approved provider. No classroom-based schools in Utah have NMLS courses, but many schools across the country offer online training that fulfills the requirements. In addition to the 20 hours of federally required training, Utah mandates that prospective licencees complete 40 hours of pre-licensing training from a state-approved provider. As of January 2011, six schools have such approval, including both classroom-based and online programs.

Examination

Prospective mortgage brokers in Utah must pass two examination to gain their necessary license and registration. The federal NMLS examination is given at eight locations in Utah as of January 2011: Draper, Lindon, Midvale, Ogden, Orem, Salt Lake City, St. George and Taylorsville. The test consists of 100 multiple-choice questions, 90 of which are graded and 10 of which are unscored, experimental questions. The state examination is given at most NMLS testing centers in Utah. The Utah-specific test includes 65 multiple-choice questions -- 55 scored and 10 unscored.

Other Requirements

Only individuals 18 years of age or older qualify for the mortgage loan originator licensing necessary to work as a mortgage broker in Utah. Applicants for licensing must also undergo both criminal and civil background checks. Individuals found to have ever had a mortgage originator license revoked or those with a history of any felony convictions within the last seven years are ineligible for licensing. Those who have ever been convicted of a felony related to fraud or perjury are also ineligible, regardless of how long ago the conviction occurred. A credit history check is also necessary for mortgage loan originator licensing.

References

• Utah Division of Real Estate: Licensed Mortgage Loan Originator
• Nationwide Mortgage Licensing System & Registry: Getting Started
• Utah Division of Real Estate: Pre-License Education Providers
• Nationwide Mortgage Licensing System & Registry: National Examination
• Nationwide Mortgage Licensing System & Registry: Utah Examination

Resources

• Nationwide Mortgage Licensing System & Registry: Find a Test Center