How to Become a Mortgage Loan Officer
A mortgage loan officer is a professional who helps potential home buyers obtain financing to purchase a home. If you are interested in a career in mortgage lending, read this blog to learn how to become a mortgage loan officer.
Checkout this video:
Introduction
A mortgage loan officer is a professional who helps people obtain loans to purchase property. If you’re interested in helping people achieve their homeownership dreams, read on to learn more about what you need to do to enter this rewarding career.
Mortgage loan officers typically work for banks, credit unions, and other financial institutions. They may also work for mortgage brokers. These professionals help individuals and businesses secure loans for the purchase of real estate.
Mortgage loan officers typically need at least a bachelor’s degree, although some employers may prefer applicants with a master’s degree or higher. Mortgage loan officers also need to be licensed by the National Mortgage Licensing System (NMLS). To obtain a license, mortgage loan officers must complete 20 hours of pre-licensing education, pass an exam, and complete annual continuing education requirements.
Prerequisites
You’ll need at least a bachelor’s degree to become a mortgage loan officer. Many years of experience in the financial industry are also required. In order to become a loan officer, you’ll need to obtain a mortgage loan originator license from the Nationwide Mortgage Licensing System & Registry. Once you have your license, you’ll be able to work for a bank, credit union, or mortgage company.
Mortgage loan officers must have a high school diploma or equivalent
A mortgage loan officer must have a high school diploma or equivalent, although many companies prefer applicants who have taken some college coursework, especially in business or economics. Less experienced loan officers may be required to take classes sponsored by the Mortgage Bankers Association of America or the National Association of Mortgage Bankers in order to learn about different types of loans and the mortgage process.
All mortgage loan officers must be licensed. Licensing requirements vary by state, but generally include successfully completing 20 to 30 hours of coursework and passing an exam. Some states require loan officers to take continuing education courses in order to keep their licenses.
They must complete 20 hours of pre-licensure education
To become a mortgage loan officer, candidates must complete 20 hours of pre-licensure education. The courses must cover state and federal regulations, consumer protection issues, loan origination activities, and mortgage industry ethics.
After completing the pre-licensure education, candidates must pass the National Mortgage Licensing System (NMLS) exam. The NMLS exam consists of a national component and a state-specific component. The national component covers general mortgage knowledge and laws, while the state-specific component covers state-specific laws and regulations.
The Licensing Process
If you’re interested in becoming a mortgage loan officer, you’ll need to meet certain requirements and complete a licensing process. The first step is to check with your state’s banking commission to see if you need to be licensed. Some states require mortgage loan officers to have a bachelor’s degree in finance or a related field, but others only require on-the-job training. Once you’ve met the requirements, you’ll need to take a written exam and complete a background check. Once you’ve completed these steps, you’ll be ready to start your career as a mortgage loan officer.
Mortgage loan officers must pass the National Mortgage Licensing System (NMLS) exam
Mortgage loan officers must pass the National Mortgage Licensing System (NMLS) exam. The NMLS is a computer-based test that lasts two hours and 30 minutes. The test has 110 multiple-choice questions, and test-takers must answer at least 92 of them correctly to pass.
Prior to taking the NMLS exam, mortgage loan officers must complete 20 hours of education. Of those 20 hours, eight must touch on federal law, three must address ethics, two must be about nontraditional mortgage products (if applicable), and the remaining seven can cover any remaining topics deemed necessary by state regulators.
Job Duties
A mortgage loan officer is responsible for originate mortgage loans. They work with customers and help them choose the right type of loan for their needs. Mortgage loan officers also help customers with the loan application process and handle all the paperwork involved in getting a loan.
Mortgage loan officers typically work for banks, credit unions, and mortgage companies
Mortgage loan officers typically work for banks, credit unions, and mortgage companies. They spend most of their time working in an office, but they may also travel to meet with clients. Some mortgage loan officers are self-employed.
Mortgage loan officers typically do the following:
-Explain to customers the different types of loans that are available
-Assess customers’ financial needs and recommend the best loan type
-Gather and analyze borrowers’ financial information, such as income tax returns, credit reports, and asset documents
-Approve or deny loan applications
-Negotiate loan terms with buyers and sellers
-Guide borrowers through the loan process from start to finish
They help customers find the best mortgage loan for their needs
Mortgage loan officers help customers with loan applications for their homes. They work with customers to find the best mortgage loan for their needs and advise them on what they need to do to make sure they qualify for the loan.
They also work with real estate agents, lenders and others in the mortgage industry to get loan applications processed quickly and efficiently. In some cases, mortgage loan officers may even be able to negotiate better terms for their customers.
Salary and Job Outlook
Mortgage loan officers typically need a bachelor’s degree in finance, economics, or a related field. Some employers may require or prefer candidates with a master’s degree, certification, or on-the-job training experience. On-the-job training generally lasts about a month and may include classroom instruction. During on-the-job training, mortgage loan officers learn about the different types of loans available and the underwriting guidelines used to approve or deny loan applications.
The median annual salary for mortgage loan officers was $63,730 in May 2019
Mortgage loan officers typically need at least a bachelor’s degree in finance, economics, or a related field. Previous experience in customer service or financial sales may be helpful. Mortgage loan officers must be licensed.
Employment of mortgage loan officers is projected to grow 4 percent from 2019 to 2029, about as fast as the average for all occupations. Mortgage loan officers will continue to be needed to answer consumer questions and close loans as the real estate market grows.
Job prospects should be best for those with a bachelor’s degree or higher and for those who demonstrate strong quantitative and communication skills, especially when communicating with customers about complex financial products.
Employment of mortgage loan officers is projected to grow 4 percent from 2019 to 2029
Mortgage loan officers must be licensed. Educational requirements typically include completing college coursework in finance, economics, accounting, and business. Some mortgage loan officers also complete postsecondary education in banking and lending, real estate, and related fields.
Loan officers held about 332,800 jobs in 2019. The largest employers of mortgage loan officers were as follows:
Commercial banks; savings institutions; credit unions; and other depository institutions: 52 percent
Mortgage companies and commercial banks: 16 percent
Self-employed workers: 8 percent
Job Outlook
Employment of mortgage loan officers is projected to grow 4 percent from 2019 to 2029, about as fast as the average for all occupations. Competition is expected to be strong because many jobs will result from the need to replace loan officers who leave the occupation each year.
