How to become a mortgage loan originator?

A mortgage loan originator (MLO) is a person or institution that works with the prospective borrower to close the right mortgage loan for a property of their choice. They work with the borrower right from application and approval until closing. A mortgage loan originator guides you through the process of getting a mortgage including any information you may need or gathering all the required documents and verifying them. A  loan originator also provides an estimate of the loan amount and interest rates after reviewing your financial documents — income, credit score, debts, and other assets.

If an MLO is employed by a bank, they don’t need a loan originator license because the banks would have them already. If they are part of credit unions, MLOs need to have state licensing. They can get multiple state licenses while working in one state. They need to meet the following licensing requirements:

• Complete 20 hours of pre-licensing education.
• Score a minimum of 75% on the two-part nationwide SAFE Mortgage Licensing Act Exam by the Nationwide Multistate Licensing System (NMLS).
• Get a thorough criminal background check.
• Continuing mortgage education each year.