Obtaining employment as a mortgage loan originator is liberating, although the position entails licensure. Since cost is one of the primary issues to consider regarding any certification examination, one of the questions that many potential MLOs ask is, “How much does it take to get an MLO license?”
Understanding the Mortgage Loan Originator license cost is crucial for each MLO to prepare effectively for their career path. This guide breaks down the typical expenses, from education and testing fees to background checks and state-specific charges, helping you budget and plan effectively for your career in the mortgage industry.
1. Pre-licensure Education
All applicants for a Mortgage Loan Originator license must meet certain requirements before the license can be issued, and one of these requirements is completing twenty (20) hours of pre-licensure education. The cost of this course may vary depending on the provider, but it typically ranges from $300 to $500.
2. SAFE MLO Test
Before beginning your mortgage origination career, you need to get your pre-licensure education and pass the SAFE Mortgage Loan Originator (MLO) test. Generally, the cost of the test is approximately $110 for the test. You are barred from using any materials or equipment that is not your own, and if you need to repeat the test, it incurs extra charges.
3. Licensing
A criminal background check is compulsory, costing between $30 and $50 depending on the state and service provider.
4. Credit Report
A Credit Report is also needed to determine your creditworthiness. The charge to get a credit report through the NMLS is generally about $15.
5. NMLS Processing Fees
When you submit your application through the NMLS, several processing fees must be considered:
- Initial Application Fee: This fee varies by state but typically costs between $100 and $300.
- NMLS Processing Fee: NMLS states a processing fee of about $30.
- Annual Renewal Fee: After getting a license, it requires annual renewal. The renewal fees may vary from $100 to $300, again depending on the state you are in.
6. State-Specific Fees
There may be extra costs or prerequisites specific to each state, such as additional education or examinations. There can be a lot of variations to these fees, and it is advised to consult the regulating authority in your state concerning the details.
7. Optional Costs Study Materials
Although not required, it is advisable to get study aids or take practice SAFE MLO examinations.
- Study materials: range between $50 and $200.
- Continuing Education: Once licensed, you will be required to take professional development courses every year. Such costs enrolled for these courses can be as cheap as $50 or as expensive as $150 per year.
Estimating Total Mortgage Loan Originator License Cost
When you add up all these expenses, the total Mortgage Loan Originator Cost to obtain an MLO license can range from approximately $635 to $1,195, depending on your state and specific circumstances. Here's a quick summary:
- Pre-Licensure Education: $300 - $500
- SAFE MLO Test: $110
- Background Check: $30 - $50
- Credit Report: $15
- NMLS Processing Fees: $130 - $330
- State-Specific Fees: Varies
- Optional Costs: $50 - $200 (study materials), $50 - $150 (continuing education)
→ Read more: Mortgage loan originator salary
Loan Factory is licensed in 48 statesLoan Factory is the best partner for MLOs
Even though loan officers need to pay certain fees before entering the market, you will find it worth it if you choose Loan Factory as your partner. We provide a package of benefits tailored to your needs to ensure your success and growth in the mortgage industry.
1. FREE Powerful One-stop-shop Platform:
Loan Factory provides our MLOs with access to MOSO to submit your loan application, find good interest rates, and do CRM at once.
2. FREE Loan Officer Assistant (LOA) for Top Producers:
We provide a complimentary LOA for our top producer to increase your productivity and reduce other paperwork burdens.
3. FREE Training from Thuan Nguyen:
Thuan Nguyen is the top Loan Officer in the USA for 2021 and 2022. We believe while working with the best, your skills and performance will be sharpened quickly.
4. FREE Marketing Support:
Loan Factory provides comprehensive marketing support to our LOs. We help you build your website, prepare a tailored social media content plan for you, and promote your business.
5. FREE Underwriting Support:
Loan Factory has an internal underwriting team to support you.
6. No Hidden Fees:
Loan Factory ensures a fee-free experience. We offer no monthly fees, no desk fees, and no other charges. This allows our Loan Officers to get the most benefits from a loan deal without worrying about unexpected costs.
7. No Minimum Production Fee:
We do not set a KPI fee or minimum production fee. Our Loan Officers are free to grow at their own pace and time.
8. Attractive Commission Plan:
Our MLOs can get 100% of the commission, only deducting a flat fee of $595 and a $500 processing fee.
9. Flexible Commission Options (1099 or W2) - up to 250 bps
10. Access to Leads in 42 States:
We provide our Loan Officers with highly qualified leads, across 42 states to increase your chances of getting more clients.
11. Licensed in 48 States:
Loan Factory is licensed in 48 states. We provide broad coverage so our LOs can expand their reach and services.
Conclusion
If you're ready to embark on an exciting career as a Mortgage Loan Originator and want to join a company that values your growth, consider Loan Factory. Visit our website www.loanfactory.com/loan-officer or call the hotline: 714-591-8143 to learn more about opportunities with us.
Loan Factory is here to welcome you with open arms. Join us and unlock a future full of opportunities!
→ Read more: Mortgage loan originator jobs
