What License Is Needed to Be a Loan Officer?

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Licensing required for being a loan officer will depend on whether you are a loan officer or a mortgage broker. Loan officers are not generally required to licensed because they are covered under the bank license. Get information on the licensing required to be an independent mortgage broker from a mortgage broker in this free video on loans.

Part of the Video Series: Home Equity Loans & Foreclosures
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Video Transcript

Hi this is Matt McKillen with Innovative Financial Group. The question that was posed to me today is what license do you need to be a loan officer? Well it's kind of a misleading question in that generally in every state there's two classifications of loan officers, one is traditionally a mortgage broker and then a loan officer even though they basically do the same job, the difference is that a loan officer usually works directly for one lender. Most states don't require any type of licensing if a loan officer is operating under a bank license. A mortgage broker on the other hand, is an independent person that arranges loans and they may have 20 or 30 different lenders that they can broker a loan to. So the majority of the time depending on what state you live in, the state generally regulates mortgage brokers and they do require licenses in order for them to arrange loans. In the state of Florida for example where I'm at, you do have to take a course, you have to take a certain amount of hours in regards to learning about the loan process, a state exam, fingerprinting, background check and then after all that has been completed, the state actually issues you a license to be a mortgage broker. Now in Florida if you go to work for a direct lender or a major bank, there is not licensing whatsoever because I think they trust that the bank is going to take liability for the loan officer's actions. So again loan officers generally do not need to be licensed if they work for a direct lender, mortgage brokers are usually subject to state licensing requirements. Again my name is Matt McKillen and I'm with Innovative Financial Group.


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