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You’ve gotten this far in your career search and now are ready to take the next step - becoming a Mortgage Loan Officer. But what does a Loan Officer do? A Loan Officer (LO or MLO) ultimately evaluates a borrower’s loan application to help them achieve the goal of homeownership. Loan Officers work with borrowers and realtors to help them determine what financing products are available and help them and their clients.
But it’s just not that, the LO’s job involves much more. Many mortgage loan officers are also in charge of their own lead generation and/or developing new relationships to help potential borrowers. Additionally, mortgage loan officers are responsible for collecting and processing a borrower’s documents. They also ensure that the loan application is following state and federal requirements.
Being a loan officer requires some serious creative and analytical thinking and relationship building skills. Why? Because every customer has a unique financial background, and a LO will need to try to find various alternative options for a client depending on their financial circumstance. It’s part of the Loan Officer role to disseminate the information and make the best recommendation to help each customer find the best loan products.
Purchasing a house is one of the biggest financial decisions that many people will make in their lives. Plus, the loan process can be very confusing. Because of both factors, it’s part of a loan officer’s job to be able to educate the loan process to their customers. Ultimately, a mortgage loan officer makes it possible for a customer to borrow money they need to purchase a home. This involves a lot of interaction and detail-oriented, numbers-driven tasks, so great loan officers excel in these areas.
No, while it may helpful it is not required, which why it’s a great career path to pursue. You can excel your career immediately – if you have strong analytical skills, enjoy engaging in building relationships and are empathetic, this is a great career to purse and excel in. Being a loan officer is very much like running your own business, but without all the added legwork to build a website, a brand, or marketing materials. By partnering with a company like Family First Funding, everything you need to succeed is given to you from Day 1.
Becoming a mortgage loan officer isn’t challenging. While some procedures are stipulated by federal regulations under the Secure and Fair Enforcement Act for Mortgage Licensing of 2008 (SAFE Act), the exact process varies based on what state you live in and where you plan to work as a loan officer.
Step One:
Register with the National Mortgage Licensing System and Registry (NMLS) and acquire an NMLS number.
Step Two:
Complete 20 hours of education with a NMLS Approved course provider.
Step Three:
Pass the NMLS Exam
Step Four:
After passing your test, obtain a license - this process can vary from state to state. You can see what you need to do to become a loan officer in your state by going to the NMLS Resource Center.
Each state also has specific requirements on how to become a mortgage loan officer, example New Jersey requires 4 hours, which may include passing specific examinations and background tests. In general, completing these minimum requirements may take approximately 45 days, depending on your schedule, aptitude, and background.
Step Five:
Contact Family First Funding to inform us that you have passed your exam so we can start your sponsorship.
Once you are working as a Loan Officer, you will need to perform continued education courses yearly and pay for license renewal every year. An additional, optional step to take is pursuing additional certifications. Although it is not required, you can choose to boost your resume. This can be done with certifications from The Mortgage Bankers Association (MBA) or the American Bankers Association (ABA).
If you want to get licensed in other states, you do not need to retake the exams. You will only need to watch a few hours of pre-education videos. You will then need to apply for the state license and do take another set of fingerprints and get a background check for the state you are applying for.
Once you have joined Family First Funding, you will work directly with your Branch Manager who will mentor you and teach you the industry. Don’t worry if you don’t know exactly how to complete the daily tasks of a mortgage loan officer. You’ll learn with time and experience!
On the simplest level, here are the steps for how to become a mortgage loan officer:
First Steps to becoming a Loan Officer
NMLS Approved Course Provider List
For questions concerning NMLS and tests being administered, please contact the NMLS Call Center at (855) NMLS-123 (855-665-7123) or visit the NMLS Testing Page of the NMLS Resource Center.
For information on the SAFE Mortgage Licensing Act, visit the NMLS Resource Center.