How To Become A Mortgage Loan Officer?
The current housing market has made it difficult to get a mortgage, but smart money is re-financing homes before the value increases again. While most of the deals are complicated, high-risk, and require high credit scores, there are still plenty of opportunities for mortgage loan originators. Even though mortgage rates are low, a mortgage loan originator can sell homes during a down market.
Pre-Licensing Training
Mortgage loan officers in the New York State Banking Department are required to complete 20 hours of pre-licensing education. This includes national requirements and 3 hours of New York state law. While all states require a national examination, the State of New York requires separate pre-licensing courses covering the state’s specific laws and regulations. Additionally, mortgage loan officers must complete 11 hours of continuing education (CE) each year. Three of those hours must be focused on state law.
To earn the New York mortgage license, candidates must complete a comprehensive pre-licensing course that meets the requirements of the Secure and Fair Enforcement Mortgage Licensing Act. This course also covers federal lending laws, ethical principles, and nontraditional mortgage products. It also includes 12 hours of electives, including mortgage loan originator examination prep, financial calculations, and various types of loans and financing instruments.
Mortgage loan originator applicants must demonstrate their financial responsibility, character, and general fitness to be licensed. They must also take a criminal background check and complete an annual continuing education course. If they choose to take this test, mortgage loan officers must submit their fingerprints to the NMLS for a background check. In addition, the NMLS requires that their fingerprints be submitted to an FBI fingerprint database.
Mortgage loan originator pre-licensing courses consist of audio presentations and online reading materials. Students must have an internet connection, a current browser, and computer speakers to participate. Some courses also include instructor-led webinar sessions. Citrix GoToMeeting software is used to deliver these courses. A webcam is not required, but an audio bridge call-in number will be provided after registration.
State Requirements
If you’d like to become a mortgage loan officer, you’ll need to obtain a license to do so in your state. Each state has its own requirements for licensure, and these are set by the state agencies that oversee the industry. You may also need to complete state-specific education courses before you can apply for a license.
You can find information about state licensing requirements on the National Mortgage Licensing Service’s website. In addition, you’ll need to take the National Mortgage Licensing exam to become a mortgage loan officer. You can check out the NMLS’ website for information about fees and deadlines. You can also find information on how to renew your license.
Once you’ve passed your exams and obtained your license, you’ll be able to start working as a home loan originator. Some people choose to work on their own, while others prefer to start with an established company with an established client base. Regardless of how you choose to get started, you’ll need to navigate the bureaucratic process and focus on the end goal – helping people buy a home they love.
Becoming a mortgage loan officer is a career that offers unlimited economic potential. If you are passionate about helping people achieve financial freedom, becoming a mortgage loan officer may be the perfect career for you. In addition to helping people buy a home, becoming a mortgage loan officer will allow you to make a difference in people’s lives.
Salary
A mortgage loan officer is responsible for the mortgage lending process. This process is complex and requires specific knowledge of the mortgage loan industry. These individuals must be familiar with state and federal regulations. While many loan officers are self-taught, some larger financial institutions require a college degree. In addition to education, mortgage loan officers must have a license, which is obtained through the National Mortgage Lenders Association (NMLS). In some states, loan officers must complete additional state-specific coursework.
A mortgage loan officer can earn a salary or commission, depending on the amount of work they do. In May 2017, the median mortgage loan originator salary in the United States was $64,660, whereas the highest paid mortgage loan officers made $135,338. In the state of New York, a mortgage loan officer can earn between $52,548 and $101,338 per year.
There are currently around 310,000 loan officers nationwide, and a forecast of steady job growth through 2024 indicates a 9% increase in jobs. Loan officers are needed in many industries, including real estate, lending, and finance. However, there are potential threats to their employment. Some disruptors in the mortgage industry, such as 360 Mortgage Group, are expected to reduce employment opportunities, although loan officers may be able to move to related positions.
The salary of a mortgage loan officer is determined by experience and the company in which they work. Senior Mortgage Loan Originators usually have at least ten years of experience, while junior Mortgage Loan Originators may have just six to nine years of experience. The average mortgage loan officer salary is $76,930 as of 3/31/2021.
