How to Become a Loan Officer in California

A loan officer is a professional who helps people obtain loans from banks and other financial institutions. If you’re interested in becoming a loan officer in California, here’s what you need to know.

Checkout this video:

Introduction

Loan officers typically need a bachelor’s degree and receive on-the-job training. Mortgage loan officers must be licensed. Education. Loan officers typically need a bachelor’s degree, although some jobs might require only an associate degree.

The Role of a Loan Officer

Loan officers play a vital role in the mortgage industry. They are the ones who help potential home buyers secure financing for their purchase. In California, loan officers must be licensed by the Department of Business Oversight (DBO).

To become a loan officer in California, you must:

– Complete 20 hours of approved coursework in mortgage banking
– Pass a written exam administered by the DBO
– Submit a complete application to the DBO

Once you have met all of these requirements, you will be issued a California Loan Officer License. This license must be renewed every two years.

The Loan Officer Licensing Process in California

In order to become a loan officer in California, you must first obtain a license from the California Department of Business Oversight (DBO). The DBO licenses and regulates a variety of financial service providers in the state, including mortgage brokers, lenders, and loan officers.

There are two ways to become a licensed loan officer in California: by passing the California Mortgage Loan Officer (MLO) Test administered by the Nationwide Mortgage Licensing System & Registry (NMLS) or by exemption. If you choose to take the MLO test, you must first complete 20 hours of pre-license education. You will then need to pass both a national and state examination before you can apply for your license.

If you are exempt from taking the MLO test, you must have at least three years of full-time experience as a licensed loan originator in another state within the past 10 years. You will also need to complete eight hours of continuing education every year in order to maintain your license.

Once you have met all of the requirements, you can then submit an application for your license through the NMLS. Once your application has been reviewed and approved, you will be able to begin working as a loan officer in California.

The Education and Training Requirements for Loan Officers in California

In California, loan officers must have a bachelor’s degree in order to obtain a license. Those who do not have a degree may still qualify for a license if they have at least four years of relevant experience.

Once you have met the education and training requirements, you will need to pass an examination administered by the Nationwide Mortgage Licensing System (NMLS). The NMLS is a centralized registration system for the mortgage industry that is used by most states.

You will also need to submit fingerprint cards as part of the licensing process. The fee for the license itself is $265.

The Employment Outlook for Loan Officers in California

The number of loan officers in California is expected to grow by about 11% from 2016 to 2026, which is faster than average for all occupations. There will be about 4,700 new jobs during this time period. The median salary for loan officers in California is $78,410 per year.

There are several paths that one can take to become a loan officer in California. A common path is to first work as a loan officer assistant or a loan processor and then move into a loan officer role. Alternatively, someone with experience in the banking or finance industry may be able to move directly into a loan officer role.

Loan officers in California must be licensed by the state. To become licensed, an applicant must have completed at least 20 hours of pre-licensing education, pass a state-administered exam, and submit a license application with the California Department of Business Oversight.

Conclusion

Here are the steps you’ll need to take to become a licensed loan officer in California:

1. Take a pre-licensing course approved by the California Bureau of Real Estate (BRE).
2. Pass the National Mortgage Licensing System (NMLS) exam with a score of 75% or higher.
3. Submit an application to the BRE along with the appropriate fees.
4. Successfully complete a background check.
5. Once you’ve been approved, you’ll be able to obtain a loan officer license from the BRE.