How long does it take to become a loan officer? The answer may vary depending on your experience and education, but we have some tips to help you get started.
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The Loan Officer Pre-Licensing Process
The road to becoming a loan officer can seem long and daunting, but with the right preparation it can be surprisingly quick and easy. The first step is to complete your loan officer pre-licensing education, which can be done in as little as eight weeks. After that, you will need to pass the state licensing exam, which is typically a two-day process. Once you are licensed, you can begin working as a loan officer.
Complete a loan officer pre-licensing education program
The first step to become a loan officer is to complete a loan officer pre-licensing education program. There are many programs available, but make sure to choose one that is approved by the NMLS. The program should be at least 20 hours and cover topics like federal and state law, ethics, mortgage financing, and different types of loans.
Once you have completed the education program, you will need to pass the national Safeguard test and the state-specific examination. These exams are administered by the NMLS and cover the same topics as the pre-licensing education program.
After passing the exams, you will need to submit an application to the NMLS along with a fingerprint card and a nominal fee. Once your application is approved, you will be given your NMLS ID number and you will be able to start working as a loan officer!
Pass the National Mortgage Licensing System (NMLS) exam
After you have met your state’s education requirements, you will need to pass the National Mortgage Licensing System (NMLS) exam. The NMLS exam is a two-part test that includes a national section and a state-specific section.
You will need to register for the exam with the NMLS and pay a fee of $125. Once you have registered, you will be able to schedule your exam at a Prometric testing center. The national section of the exam is computer-based and consists of 90 questions that must be completed within 2 hours.
The state-specific section of the exam is also computer-based and consists of 20-30 questions that must be completed within 1 hour. Once you have passed both sections of the exam, you will be issued a mortgage loan originator license.
The Loan Officer Licensing Process
To become a licensed loan officer, you must complete a few steps. The first step is to complete 20 hours of pre-license education. The second step is to pass the state exam. And the third step is to complete a background check. After you have completed all of these steps, you will be able to apply for a loan officer license.
Obtain a surety bond
Mortgage loan officers must obtain a surety bond as a licensing requirement in most states. A surety bond is an insurance policy that protects consumers from losses caused by dishonest or fraudulent loan officers. The cost of the bond is typically a percentage of the loan officer’s annual income, and the price will vary depending on the state in which the loan officer is licensed.
Pass a background check
The first step in becoming a loan officer is to pass a background check. Loan officers must be of good moral character and have no criminal convictions. The background check will also ensure that you have not been the subject of any disciplinary action by any professional body.
After you have passed the background check, you will need to complete a loan officer training program. This can be done through an online program or at a brick-and-mortar college. The training program will teach you the basics of the loan process, including underwriting and processing loans.
Once you have completed your training, you will need to take and pass the National Mortgage Licensing System (NMLS) exam. The NMLS exam is administered by the state in which you plan to work as a loan officer. Once you have passed the exam, you will be issued a state license.
Register with the NMLS
The first step in the loan officer licensing process is to register with the Nationwide Mortgage Licensing System (NMLS). Registration is quick and easy, and can be done online. You will need to create an account, and then pay the registration fee. The fee is currently $100 for an individual registration, or $300 for a company registration.
Once you have registered with the NMLS, you will be given a unique identification number (UID). You will need to use this UID when you apply for your license.
##Heading:Complete Required Training Courses
The next step in the loan officer licensing process is to complete the required education courses. There are two courses that are required: one on federal lending regulations, and one on ethics. These courses must be completed before you can take the state-specific licensure exam.
The federal lending regulation course must be at least eight hours long, and must be completed within one year of your initial registration with the NMLS. The ethics course must be at least two hours long, and must also be completed within one year of your initial registration.
##Heading:Pass the State-Specific Licensing Exam
After you have completed the required education courses, you will need to pass the state-specific licensing exam in order to become a licensed loan officer. The exam covers both federal and state lending regulations, and is administered by Prometric, a third-party testing company.
You will need to schedule an appointment with Prometric to take the exam, and there is a $115 fee for taking the exam. You will need to bring your UID number with you when you go to take the exam.
##Heading:Submit an Application for Licensure
Once you have passed the state-specific licensing exam, you will need to submit an application for licensure to your state regulator. The application must be submitted through the NMLS, and there is currently a $200 fee for submitting an application for licensure. States may also require fingerprinting as part of the licensure process
The Loan Officer Renewal Process
It generally takes about two weeks to become a loan officer. The first step is to take a loan officer course, which is offered by many community colleges and online institutions. After you have completed the course, you will need to take a state-specific loan officer exam. Once you have passed the exam, you will be able to apply for a loan officer license.
Complete continuing education courses
In order to renew your loan officer license, you will need to complete continuing education (CE) courses. The number of CE hours required varies by state, but is typically between 8 and 20 hours per year. Some states require that you complete a certain number of hours of CE in specific topics, such as ethics or fair lending practices.
You can usually take CE courses online, through correspondence courses, or at seminars and conferences. Once you have completed the required CE hours, you will need to submit proof of completion to your state licensing authority.
The CE requirements for loan officers are typically less stringent than those for other financial professionals, such as stockbrokers or insurance agents. However, taking quality CE courses can help you stay up-to-date on changes in the lending industry and learn new skills that can make you more successful in your career.
Renew your NMLS registration
If you’re a loan officer, you need to renew your National Mortgage Licensing System (NMLS) registration every year. The process is simple and can be done entirely online. Here’s what you need to do:
1. Log in to the NMLS Renewal System with your NMLS ID and password.
2. Click on the “Renew” button next to your license information.
3. Pay the renewal fee of $105. You can pay by credit card, debit card, or ACH transfer from your bank account.
4. Complete the continuing education requirements for your state, if applicable. You will need to complete 8 hours of NMLS-approved CE each year.
5. Submit your renewal application and supporting documentation by the deadline date listed on your renewal form.
Once your renewal is processed, you will receive a new NMLS ID and password, which you will use to log in to the NMLS Consumer Access website and update your contact information as needed.
Renew your surety bond
If you are a loan officer, you are required to maintain a surety bond throughout the duration of your license. The surety bond is in place to protect consumers from any fraud or malfeasance that you may commit while performing your loan officer duties. The amount of the surety bond varies by state, but is typically between $5,000 and $25,000.
You will need to renew your surety bond every year, and the cost of the bond will depend on your claims history and credit score. As long as you don’t have any claims against your bond, and your credit score is good, you should be able to get a competitive rate on your bond premium.