24 Questions You ABSOLUTELY Need Answered Before Getting Your Florida Mortgage License
So you are thinking about becoming a loan officer in Florida. Chances are that you have some questions about the industry and what it takes to become a loan officer, but you don't know the right person to ask! Look no further! Mortgage Educators and Compliance has all the questions you didn't know you had and the answers you didn't know you needed. Here is a list of the 24 most pressing questions new loan officers should know the answer to when getting started on their license.
1. What do loan officers do?
Loan officers help potential homebuyers to secure the financing they need in order to be able to make the biggest investment of their lives—buying a home by obtaining a mortgage loan. Loans are made by determining the right option for the potential homebuyer’s budget and needs.
2. What is the difference between a mortgage broker and a mortgage loan originator?
This is one of the biggest misconceptions that new loan officers run into. Generally speaking, a mortgage broker is a company that employs mortgage loan officers. For the most part, when someone is looking for a “mortgage broker license”, they are really looking for a “loan originator license”. Chances are, you are in the right place.
3. What is an MLO?
MLO is simply an acronym for Mortgage Loan Officer. You will hear this often throughout the industry.
4. Do I need a degree to obtain my Florida mortgage license?
A college degree is not required to become a Florida loan officer. The minimum education requirement to become a loan officer in Florida is a high school diploma. Submission of evidence of a high school diploma is required by the NMLS. But we will get to that later.
5. Do loan officers get paid on commission?
Most loan officers are paid on commission. However, loan officers may find positions where they are paid hourly. This largely depends on both the employer and the experience of the loan officer.
6. What is an average Florida loan officer salary?
Determining a truly average salary for loan officers can be difficult as many loan officers originate loan as a side job. With that in mind, according to salary.com, the average salary for a Florida loan officer is around $38,000 a year. What’s important to remember, however, is that loan origination is often commission-based and what you get out of it is determined largely by what you put in.
7. Can loan officers work from home?
Absolutely! However, keep in mind that each company will have their own preferences and rules for working from home. Some companies may not allow it, but there are plenty that do.
8. Can I work privately as a loan officer or do I need to be affiliated with a company?
You cannot originate loans by yourself. In order to originate loans, you will need to be sponsored by an approved mortgage broker, banker or lender.
9. What is the NMLS and what do they do?
The NMLS is the Nationwide Mortgage Licensing System, the sole system of licensure for loan officers in 59 state and territorial agencies. This is the entity through which you will obtain and renew your mortgage license.
10. Who needs an NMLS Mortgage License?
All loan originators who do not work for a depository institution (such as a bank or credit union) need an NMLS license in order to originate loans. To put it simply, if you work for a mortgage company then you need a license.
11. How do I get my NMLS ID?
Obtaining an NMLS ID is free and very simple. To get started, simply Request an Account and click Individual. Next you will fill in your personal information and confirm. You will then be given both your NMLS username and your NMLS ID number. These will be sent to your email.
Remember that your NMLS ID is not valid for anything outside of pre-licensure requirements until you have completed the entire license submission to the NMLS.
12. How many hours do I need to take to get my Florida loan officer license?
Florida loan officers must complete a total of 20 hours of education in order to obtain a state license. This license will allow the loan officer to originate loans within the state of Florida ONLY. These 20 hours are made up of the 18-hour SAFE Pre-Licensure course and the 2-hour Florida state course.
13. How do the 18-hour and 2-hour courses work?
The 18-hour SAFE mortgage education course and the 2-hour Florida state course are both Online Instructor Led (OIL) courses. These OIL courses are made up of pre-recorded videos broken into 5 minutes sections. The NMLS requires that OIL classes be completed within the given time period or the student must retake the course from the beginning.
Mortgage Educators offers two separate tracks for the 18-hour course. There is a 5-day course and a 12-day course. You may choose to begin on the following Monday, Wednesday, or Friday, and your access period will begin on the selected day.
The 2-hour course Florida state course is available for 3 months, and must be completed within that time.
14. How do my education hours get submitted to the NMLS?
Mortgage Educators and Compliance takes care of submitting all education hours to the NMLS. It can take up to 5 business days to have the hours reflected in your account, so plan accordingly.
15. What is on the NMLS test and how much is it?
For your Florida loan officer license, you will need to take the NMLS National test component. This test is comprised of 125 questions, 115 of which are scored. The testing fee is $110 and you will have just over 3 hours to complete the test.
IMPORTANT: One thing that is important to note about the NMLS National test component is that it is very difficult. The mortgage industry is a large one, with lots of information to pull test questions from. Expect questions that you may not know the answers to because you have not been exposed to them yet. That is normal. Just study the study guide included with you 20 hour SAFE course as best as you can and answer the questions to the best of your ability.
16. Where do I take the test? Can I take it at home?
The NMLS test must be scheduled and taken at a Prometric testing center. Testing centers are placed throughout the country and chances are that there is one very close to you.
There are three ways to schedule your test at one of these testing centers. You can:
- Login to your NMLS account and navigate to the Manage Test Appointments page
- Go to www.prometric.com/nmls (the easiest option)
- Call Prometric directly at 1-877-671-6657
17. After the courses and tests, what else does the NMLS need for me to get my license?
In addition to the completion of the 18-hour and 2–hour courses and the NMLS National test component, you will need to submit:
- Form MU4 (you can learn more about filing this here)
- Required application fee ($195) and the guaranty fund fee ($20).
- FBI criminal history background check results
- State criminal history background check results
- Credit report authorization
18. What fees do I have to pay for my Florida loan officer license?
The NMLS collects 6 fees as a part of the application process:
- $195 Florida application fee
- $20 Florida guaranty fund fee
- $30 NMLS processing fee
- $36.25 Federal criminal background check
- $33 Florida state criminal background check
- $15 Credit Report fee
Total application fees: $329.25
Keep in mind that this does not include fees for reporting course hours to the NMLS. Mortgage Educators includes all course reporting fees in its prices to help make that process easier. You will, however, be responsible for paying the NMLS testing fee ($110).
19. What is the purpose of the credit report and background check?
The credit report and criminal background check is often a point of concern for new licensees. The NMLS conducts a criminal background check and credit report to make sure that there is nothing in the past of the licensee that would raise concern of the applicant’s trustworthiness. If you have any specific questions about the credit report or background check, please call the state licensing authority at (850) 487-9687.
20. What do I do with my course certificate at the end of the course?
The certificate that you receive at the end of the course is for your records. You are not required by the NMLS to show your certificate as evidence of your course completion since Mortgage Educators reports your hours for you.
21. Can I be licensed in more than one state? How do I go about doing that?
It is possible to be licensed to originate loans in more than one state. In order to do so, you must complete the education requirements and pay all required fees for each state in which you would like to be licensed.
For example, if you wanted to be licensed in both Florida and Mississippi, you would have to complete:
- 18 Hour SAFE Pre-Licensure Course
- 2 Hour Florida State Law Course
- 4 Hour Mississippi State Law Course
After these courses are completed, you would need to take the NMLS National test and then pay any fees for both states. Keep in mind that each state must individually be renewed at the end of the year.
22. When do I need to renew my license and how do I do it?
Your NMLS license must be renewed annually. Renewal of your NMLS license requires the completion of CE, or continuing education, which is done annually. For Florida, you will need to complete a 7-hour CE course with an additional 1-hour course of state law. Once the courses are completed, Mortgage Educators will ensure that your completed hours are reported to the NMLS. Just apply for renewal and pay the fee to the NMLS by the end of the year to carry your license into the following year.
NOTE: You DO NOT need to complete CE and renew your NMLS license in the same year in which you completed your 20-hour course. For example, if you completed the course in June 2017, you would not need to complete CE for renewal until the following calendar year.
23. What is the "successive years" rule and how does that affect my renewal?
The "successive years" rule is a rule from the NMLS that states that loan officers cannot take the same course two years in a row. This doesn’t mean that you cannot take courses with the same course provider year after year; it simply means that you cannot take the same course.
Mortgage Educators changes its courses annually so our students are never in violation of the Successive Year Rule. You can rely on Mortgage Educators to give you a great course every year, worry-free!
24. How can Mortgage Educators and Compliance help me?
Mortgage Educators and Compliance has been an industry expert in mortgage licensing and education for 25 years. Time-tested and valued, Mortgage Educators brings quality course content with great instructors to both live and online formats to make sure your education needs are taken care of year after year.