How to Become a Loan Originator

A loan originator is a professional who helps people obtain loans from lenders. If you’re interested in becoming a loan originator, read this blog post to learn more about the requirements and steps you’ll need to take.

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Introduction

If you’re interested in a career in the financial industry, becoming a loan originator is a great option. Loan originators work with borrowers to obtain financing for a variety of purposes, such as purchasing a home, refinancing an existing loan, or taking out a business loan.

Becoming a loan originator requires completing a few steps, including completing educational requirements, passing exams, and obtaining a license. Read on to learn more about how to become a loan originator.

Complete Educational Requirements
To become a loan originator, you will need to complete some educational requirements. A high school diploma or equivalent is required for most positions, but some employers may prefer candidates who have completed some college coursework or have a bachelor’s degree.

You will also need to complete 20 hours of pre-license education from an approved provider. The courses you take must cover topics such as federalconsumer protection laws, ethics, and non-traditional mortgage products. You can find approved providers and courses by visiting the website of the Nationwide Multistate Licensing System & Registry (NMLS).

Pass Exams
After you have completed your educational requirements, you will need to pass two exams: the National Mortgage Licensing System (NMLS) Uniform State Test (UST) and the NMLS SAFE Comprehensive Examination. The UST covers state-specific mortgage laws and regulations and is administered by Prometric. The SAFE Comprehensive Examination covers federal consumer protection laws and ethics and is administered by Pearson VUE. To register for the exams, create an NMLS account and then select “Exams” from the main menu.

Obtain a License
Once you have passed both exams, you will need to submit an application for a state-specific mortgage loan originator license through NMLS. You will be required to provide personal information such as your Social Security number, education history, employment history, and any criminal convictions. You will also be required to pay a fee. After your application has been processed, you will be issued your license.

What is a Loan Originator?

A loan originator is a professional who helps potential borrowers obtain financing for their home purchase. A loan originator can work for a bank, mortgage company, or other financial institution, or may be self-employed.

Loan originators must be licensed in the state in which they work. To become a loan originator, you must complete 20 hours of pre-licensing education from an approved provider, pass the national and state exams, and submit a fingerprint and background check to the Nationwide Mortgage Licensing System (NMLS).

Once you are licensed, you will need to complete 8 hours of Continuing Education (CE) every year to maintain your license. CE can include courses on ethics, fair lending practices, fraud prevention, and more.

If you are interested in helping people obtain financing for their home purchase, becoming a loan originator may be the right career choice for you.

The Steps to Becoming a Loan Originator

If you are looking for a new career in the finance industry, you may be wondering how to become a loan originator. A loan originator is a professional who helps people obtain loans from lenders. They work with both borrowers and lenders to ensure that the loan process goes smoothly. Becoming a loan Originator requires completing a few steps.

Step One: Research

The first step to becoming a loan originator is to research the industry and the specific job you want to pursue. Familiarize yourself with the different types of loans that exist and the terms used to describe them. You should also research the different types of loan originators and what their responsibilities are. This will give you a better understanding of what you need to do in order to become a loan originator.

Step Two: Get a Loan Originator License
In order to become a loan originator, you will need to obtain a license from your state. Each state has different requirements for licensure, so you will need to check with your state’s licensing board to find out what is required of you. In general, however, you will need to complete a pre-licensing course and pass an exam in order to obtain your license.

Step Three: Find a Job
Once you have obtained your loan originator license, you will need to find a job with a lender or mortgage broker. Many times, originators are able to find work through referrals from friends or family members. You can also search online job boards or contact companies directly to inquire about open positions.

Step Four: Maintain Your License
It is important to note that your loan originator license must be renewed on a regular basis. In most states, your license will need to be renewed every two years. To renew your license, you will likely need to complete continuing education courses and maintain compliance with any other requirements set forth by your state’s licensing board.

Step Two: Pre-Licensing Coursework

Most states require loan originators to take pre-licensing coursework from an accredited institution before taking the lending license exam. The Mortgage Bankers Association of America (MBA) offers an online course that satisfies the pre-licensing education requirements for most states. The course is called “Originator University” and it costs $495 for MBA members and $795 for non-members.

MBA also offers a course combo package that includes both the pre-licensing course and the licensing exam for $995 for members and $1,295 for non-members. MBA’s “Originator University” is one of the most popular pre-licensing courses in the industry, but there are other courses available from different providers.

Once you have completed your pre-licensing coursework, you will need to take and pass your state’s lending license exam. Contact your state’s lending regulator to find out more about their specific requirements.

Step Three: National and State Exams

Once you have completed your 20 hours of pre-licensure education, you will need to pass both a national and a state exam in order to earn your loan originator license. The state exam covers state-specific laws and regulations, while the national exam covers general mortgage lending knowledge.

You will need to register for both exams in advance, and you can do so through the Nationwide Mortgage Licensing System (NMLS). The NMLS website also provides a list of approved course providers, if you need help finding one in your area.

Once you have passed both exams, you will need to submit an application for your loan originator license through the NMLS. You will also need to provide fingerprints and pass a criminal background check. Some states may have additional requirements, so be sure to check with your state’s regulator for more information.

The Benefits of Becoming a Loan Originator

There are many benefits to becoming a loan originator. As a loan originator, you will have the opportunity to work with a variety of clients, including individuals, businesses, and government agencies. You will also be able to originate a variety of loans, including home equity loans, auto loans, and personal loans. In addition, loan originators typically earn a commission on the loans they originate, which can add up to a significant amount of money over time.

Conclusion

Becoming a loan originator can be a great way to help people finance their homes. It’s a rewarding career that offers a good salary and the opportunity to work with a variety of different people. If you’re interested in becoming a loan originator, there are a few things you need to do.

First, you’ll need to get a license from your state. To do this, you’ll need to complete a pre-licensing course and pass an exam. Once you have your license, you can begin working at a bank or mortgage company.

If you want to advance your career, you can become certified as a Mortgage Loan Originator (MLO). To do this, you’ll need to complete additional coursework and pass another exam. MLOs have more responsibility than loan originators and typically earn a higher salary.

Becoming a loan originator is a great way to enter the world of finance. With hard work and dedication, you can build a successful career in this field.