How to Become a Mortgage Loan Officer in AlabamaYou are living in Alabama and want to increase your income with a flexible job. Let's search “How to become a Mortgage Loan Officer in Alabama?”. Our 2025 guide details the essential steps, from licensing requirements and exam details to salary potential. Follow this guide to fast-track your journey and help Alabamians achieve their dream of homeownership.
→ Read more: Is Mortgage Loan Officer a Good Career? The Truth Revealed
Alabama’s Licensing Requirements (2025)
Alabama’s Licensing Requirements in 2025
Becoming a mortgage loan officer (MLO) in Alabama involves five essential steps:
1. Meet Basic Eligibility
- Must be 18+ with a valid Social Security Number
- Pass a criminal background check and credit review
- Must not have certain felony convictions (fraud, dishonesty, trust breach) within the past 7 years
2. Complete 20 Hours of Pre-Licensing Education
Alabama adheres to the SAFE Act's 20-hour minimum requirement:
- 3 hours of federal law
- 3 hours of ethics
- 2 hours of non-traditional lending
- 12 hours elective topics (Mortgage Educators)
3. Pass the SAFE MLO Exam
- 125 multiple-choice questions
- 75% minimum score, 190-minute duration
- The exam costs approximately $110
4. Submit Your NMLS Application
Through NMLS using Form MU4, you must:
- Provide education records and exam results
- Undergo fingerprinting and background check (~$36)
- Pay application fees (NMLS processing ~$105, credit check ~$15)
5. Employer Sponsorship Required
Your license must be sponsored by an Alabama-licensed lender or broker before becoming active. You also need a physical office location tied to the sponsoring company.
→ Read more: Mortgage Loan Officer Training: Build Skills, Close More Loans
Continuing Education & Renewal
Maintaining your MLO license in AlabamaTo maintain your MLO license in Alabama:
- Complete 8 hours of CE annually:
- 3 hours of federal law
- 2 hours of ethics
- 2 hours of non-traditional lending
- 1 elective hour (OnCourse Learning)
- CE deadline: December 31, with recommended submission by November 1 to avoid delays (Mortgage Educators)
- Renewal fee is approximately $75, with a $25 reinstatement charge if lapsed (Mortgage Educators)
How Alabama Compares to Other States
State | Pre-Licensing Hours | State Additions |
Alabama | 20 | Criminal/credit checks, employer sponsorship, CE required yearly |
Ohio | 24 | 4-hour Ohio-specific pre-license elective |
Washington | 22 | 4-hour WA-specific pre-license elective |
Virginia | 20 | No state-specific additions |
West Virginia | 24 | 4-hour WV-specific elective |
Alabama stands out for requiring employer sponsorship and maintenance of an office address, though it doesn’t mandate extra pre-licensing hours like some states. (OnCourse Learning)
Timeline to Become Licensed
Timeline to Become Licensed Mortgage Loan OfficerTypically takes 4–8 weeks:
- Pre-license coursework–1 to 2 weeks
- Exam preparation and passing–1 to 2 weeks
- Application processing–2 to 4 weeks
- Employer sponsorship–1 week (varies)
Earnings Expectation in Alabama
As of the U.S. Bureau of Labor Statistics, Alabama loan officers earn a median salary around $68,000–$75,000, with top producers—especially in housing or commercial niches—earning $100K+ annually via commission.
→ Read more: How Much Mortgage Loan Officers Make Per Loan?
Why Choose Loan Factory to Launch Your Alabama Career as a Mortgage Loan Officer
When you're just getting started, who you partner with matters. Loan Factory offers:
- Access to +240 lenders, including residential, commercial, land, DSCR, and chattel loans
- Free MOSO tech platform to streamline apps, documents, and processing
- 100% commission minus a flat $595 per loan
- Supportive culture with no desk fees or minimums, plus company-generated leads in 42 states, including Alabama
- Weekly training from Thuan Nguyen, CEO of Loan Factory and the #1 mortgage loan officer in the U.S.
→ Read more: Mortgage Loan Officer CRM: Why Top Loan Officers Are Flocking to Loan Factory’s Platform
With that level of support—training, tech, and transparency—you can sidestep early challenges and accelerate your growth.
Loan Factory will provide free CRM for Mortgage Loan OfficersIf you’re ready to learn how to become a mortgage loan officer in Alabama, visit our licensing resource:
www.loanfactory.com/becoming-a-loan-officer
Call us at 714‑591‑8143 if you’d like personalized guidance. We provide licensing discounts, sponsorship support, and turnkey tech and marketing tools to help you launch faster and stronger.
Frequently Asked Questions (FAQs): Become a Mortgage Loan Officer in Alabama
How long does it take to get a mortgage license in Alabama?
