Mortgages come in several different loan types, have various qualifications, require certain documents, and vary in terms by different lenders and state laws. It’s important to work with an MLO that has knowledge in the residential mortgage loan industry and your specific state.
Nationwide banks are required to have federal registrations and do not require individual MLOs to obtain a loan originator license.
For non-bank lenders, like credit unions, MLOs are required to be licensed with individual states. An MLO could be licensed in multiple states, even if they work in one state. To become an MLO, one must 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, developed by the Nationwide Mortgage Licensing System (NMLS)
● Agree to a thorough background check
● Commit to continuing mortgage education each year