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Whether you’re looking to start a new career or renew your NMLS license, we’re here to assist you. In this article, we’ll provide background information, guide you on obtaining your NMLS license, introduce our top NMLS licensing and CE schools, and help you begin your journey towards licensure or quick renewal. Let’s dive in!
Becoming a Mortgage Loan Officer (MLO) can be a rewarding career if you have the skills to consistently add value to your clients. For the average homebuyer, obtaining a mortgage can be a daunting task, and having the assistance of a licensed professional is crucial. This is where a Mortgage Loan Officer (MLO) comes in.
Mortgage Loan Officers, also known as Mortgage Loan Originators or Lending Officers, typically earn a salary with commissions. They enjoy flexible work hours and can work independently or with a bank or mortgage broker. However, obtaining an NMLS license is a prerequisite for entering this field. Let’s explore the process of obtaining or renewing your MLO license.
Best NMLS prelicensing & CE schools for 2024
NMLS license costs
If you’re aiming to work as a certified MLO, having an NMLS license is essential. However, NMLS licensing costs can be significant, considering prelicensing courses and processing fees. It’s crucial to understand these costs upfront before embarking on your licensing journey.
Here’s a breakdown of some of the processing, registration, and background check costs associated with obtaining your NMLS license. These costs vary by state, so it’s important to check the specific requirements in your state.
How to get an NMLS License (in 4 steps)
Having understood the importance of an NMLS license and its associated costs, let’s delve into the steps for obtaining your NMLS license. By following these steps, you’ll be on your way to becoming a licensed MLO:
Step 1: Review your state’s eligibility requirements
Most states have common prelicensing requirements, such as a minimum of 20 hours of coursework before obtaining your license and NMLS number. Familiarize yourself with your state’s specific NMLS requirements before enrolling in a prelicensing course. Ensure you meet the eligibility criteria before investing time and money in a course. Each state has unique requirements, so it’s essential to research your state’s .gov page for accurate information.
Step 2: Complete a prelicensing course in your state
After researching your state’s requirements, enroll in a prelicensing course to fulfill the mandatory coursework hours. These courses cover various topics beneficial for your role as an MLO. The typical prelicensing course includes hours dedicated to federal law, ethics, non-traditional mortgage lending, and elective coursework based on state requirements.
Refer to a chart detailing NMLS prelicensing and continuing education course hour requirements by state for a comprehensive understanding.
Upon completing the course, you’ll need to pass a prelicensing exam, which opens the registration window for obtaining your NMLS license.
Step 3: Pass the SAFE MLO exam
As per the SAFE Mortgage Licensing Act of 2008, passing the SAFE MLO exam is mandatory for aspiring MLOs. The exam assesses your comprehension of federal mortgage laws, general mortgage knowledge, MLO activities, and more. Aim for a score of 75% to pass the exam, and utilize practice tests to enhance your preparation.
Sample questions
Prepare for the exam by familiarizing yourself with sample questions related to MLO activities and federal mortgage laws.
Where to find MLO practice tests
Access free practice questions online to refine your knowledge and readiness for the MLO exam.
Step 4: Apply for your license through the NMLS
Upon passing the exam, register with the NMLS to receive your registration number and commence your career as a licensed MLO. Create an NMLS account, complete the MU4R form with detailed personal and employment information, and monitor your license application progress through the dashboard.
Step 5: Complete a background and credit check & pay fees
Finalize the licensing process by undergoing a background check, fingerprint appointment, credit check, and fee payments. Ensure a clean background record and credit score to facilitate the approval of your NMLS license.
HW Media, LLC has established an agreement with The CE Shop to promote online course information to consumers and real estate licensees. HW Media, LLC is not the developer of these courses and is simply providing a referral. Any questions regarding course content or technology should be directed to The CE Shop.
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