Mortgage loan officers play an essential role in mortgage loans, especially the mortgage process for homebuyers. Mortgage Loan Officers assist people in obtaining mortgage loans so they can achieve homeownership. Therefore, to become an MLO, a person has to meet a huge amount of requirements, including education with several Mortgage Loan Officer courses as well as skills: communication, data analysis, etc, and experiences. This article will give more detailed knowledge of the mortgage loan officer course: what the course entails, how long to complete the course, and offer several ways for MLOs to begin this fulfilling career.
Due to the critical and sensitive nature of the job mortgage loan officers are required to be knowledgeable and duly accredited. The SAFE Act required state licensing for mortgage loan officers and for licensees to take and pass the SAFE test on the NMLS.
The Mortgage Loan Officer Course: An Overview
The mortgage loan officer course is intended to prepare potential employees for the industry providing them with knowledge and practice. Here’s a breakdown of what the course typically entails:
1. Pre-Licensure Education (PE)
- Duration: The SAFE Act requires a minimum of 20 hours of pre-licensure education.
- Content: This course entails aspects like federal law and regulation; ethics; non-traditional products: mortgages and lending standards of the nontraditional mortgage products market.
- Breakdown:
- Federal Law and Regulations: At least 3 hours
- Ethics: At least 3 hours, which includes; fraud, consumer protection, and fair lending.
- Non-Traditional Mortgage Products: At least 2 hours
- Electives: The rest of the hours may be state-specific or possibly, there could be hours on other topics that may be considered relevant.
2. State-Specific Education
- Certain states have laid down more hours than twenty which is the national requirement for the course. These are state-specific courses and are designed to cover the state laws, rules, and procedures only.
3. Exam Preparation
- The course occasionally entails coverage of the NMLS exam; the exam checks the learner’s understanding of federal and state laws regarding mortgage lending and how to execute them.
→ Learn more: how to become a mortgage loan officer with no experience
Key Topics Covered in the Mortgage Loan Officer Course
1. Federal Mortgage Laws
- Knowing the federal laws such as TILA (Truth in Lending Act), RESPA (Real Estate Settlement Procedures Act), and others that exist in the United States.
2. Ethics and Consumer Protection
- Stressing the principles of ethical actions, fraud identification and prevention, and protection of consumers.
3. Non-Traditional Mortgage Products
- Looking at extensions of the basic fixed rate or adjustable rate mortgage types which include interest-only mortgages, and reverse mortgages.
4. Loan Origination Process
- Specific guidance on the processes of originating a loan which includes application to closing.
5. Financial Analysis
- Becoming aware of the methods of recognition and definition, credit analysis, income check, and Debt-income-ratio (DIR)
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STEPS to becoming a Licensed Mortgage Loan Officer
1. Complete the Pre-Licensure Education
- Obtain the 20-hour NMLS-approved course, and any additional state-required course, and successfully complete it.
2. Pass the NMLS Exam
- This examination includes a national portion and a state portion. If a person does not pass the NMLS Exam, he/she will not work as a Mortgage Loan Officer.
3. Background Checks
- Submit a criminal records check and a credit check when applying for a license.
4. Apply for the License
- The application needs to be also completed and submitted via the NMLS along with the documentation proving the completion of education, results of the examination, and clearance of the background check.
5. Continuing Education
- The mortgage loan officers who secured their licenses have to take continuing education to renew their licenses annually. This often entails Federal Laws and Rules, Ethics, Non-Traditional Mortgage Products, or any other subject of the licensee’s choosing with a requirement of at least 8 hours.
→ Learn more: mortgage loan originator license cost
Conclusion
Begin your Mortgage Loan Officer job at Loan Factory by attending the Loan Officer Academy to learn the basic fundamentals you need to know. It does not matter if you are a beginner or a professional, we offer you all the necessary equipment and conditions for success. Come and join us – create a successful future in the mortgage sector.
For more information about available positions, visit www.loanfactory.com or call 714-444-9999. Start your journey towards a successful career as a mortgage loan officer with Loan Factory today!
