Job Description of a Mortgage Loan Officer Mortgage officers meet with prospective loan applicants and verify and collect all necessary financial records. They then determine whether the individual or company is eligible for a loan based on their credit and other criteria. Once the loan officer determines whether or not the applicant is eligible for a mortgage loan, they submit their application to the lender. The applicant will then receive an application, which they must sign and return along with any other required documents. Loan officers collect a commission on each mortgage loan they close.
Education and Training requirements to become a mortgage loan officer vary from state to state. Most states require an accredited high school diploma or the equivalent to be used as a qualification factor for an application to become a mortgage originator. Many states also require that the loan officer have at least five years of experience working in the field as well as a certification or license that states the loan officer has completed the necessary courses and passed the licensing exam. Many states require continuing education courses be taken every two years as well.
Certification Requirements to Become a Mortgage Broker Generally speaking, mortgage brokers can work in a variety of different capacities within mortgage companies and independent mortgage brokers. Mortgage brokers can either specialize in one particular field such as loans or mortgages or can operate as an independent mortgage lender. Independent mortgage brokers have the ability to access higher loan amounts and lower interest rates than mortgage brokers who are employed by larger lenders and banks.
Licensing Process to Become a Mortgage Loan Officer In order to work as a mortgage loan officer, you will need to obtain formal education and training from a licensed mortgage lending institution. A few states do not require licensure, however, there are a number of other requirements that must be met in order to become licensed. Most states require that the applicant complete a degree from an accredited university or college and pass the licensing exam. In order to be eligible for licensing, applicants must have a bachelor’s degree, pass the licensure exam, and complete two years of related experience as a mortgage loan originator. In order to obtain this experience, many states require applicants to work for at least two years in a related position at a bank while receiving training.
Brokers and Lenders: The majority of mortgage loan officers typically begin their careers working as an assistant to a loan officer. They then graduate to become a full-time mortgage loan officer after four years of work experience. Full-time mortgage loan officers typically begin working with a small lender and help them establish business relationships by working with existing clients to secure loan programs. Once a lender decides to expand into larger loans, these same professionals to help them refinance their loans or find new lenders to underwrite new programs for them.
Education Courses: To become an educated broker or lender, individuals must complete a six-year bachelor’s degree from an accredited university or college. In addition to attending classes during school, individuals must also complete relevant education courses, including psychology, business, and financial management. Most mortgage brokers and lenders will ask potential applicants to successfully complete a six-year degree from accredited institutions. To be eligible, applicants must also pass the national exam known as The Mortgage Broker Examination.
Certification and Licensing: The responsibilities of each mortgage broker or lender will vary depending on the state they work in. Each state also has individual requirements for licensing. In most instances, those licensed to work in this capacity must be fingerprinted, have background checks, and undergo drug testing. There are also specific rules and regulations regarding these requirements by individual states. It is important for potential applicants to check the laws and regulations regarding licensing and certification prior to beginning the licensing process.
Experience: Many states require that potential loan officers have at least five years of experience working as an agent in this capacity. In addition to the degree requirement, the number of years of experience must be supported by a portfolio that showcases their success. To apply for licensure, applicants must also successfully complete a background check and a credit check. Individuals who successfully meet the requirements may also be required to take and pass a certification exam. These exams and background checks are often conducted by the department of financial institutions, state financial agencies, or the Department of Insurance.