How to Get Into the Mortgage Industry: 7 Steps to Get Started

If you’re looking to build a successful mortgage career, you may need guidance on how to get into the mortgage industry. Here’s what you need to know when embarking on your new career path.

1. Obtain an NMLS ID Number 

Start by applying for your NMLS account. Getting a number is done entirely online. You’ll need an account before you can complete and submit the form. If you have an employer, they can create the account on your behalf. When you get your NMLS ID, it will contain your permanent license number. 

2. Take a Pre-Licensure Education

Although it isn’t necessary to earn a formal degree, you should have a high school diploma or GED. However, you can enjoy better employment opportunities and earning potential if you hold an accounting, finance, or business administration degree. Aside from these educational requirements, you also need to finish state-specific mortgage classes that cover federal and state laws relevant to your future mortgage career. These classes can also serve as your resource on how to get into the mortgage industry.

3. Pass the MLS Mortgage Licensing Exam 

After completing your pre-licensure class, it’s time to schedule an appointment for your National Test Component exam. You’ll need to pass your NMLS exam or SAFE Mortgage Loan Originator Test to earn your mortgage license. Be prepared to answer questions pertaining to mortgage practices and guidelines and regulations for your state. A score of at least 75 percent is needed to pass the exam. 

4. Complete Criminal Background Checks and Fingerprints

After passing your loan officer license exam, you’ll continue the license application process by submitting to a background check. This necessary step ensures that every workplace is a safe and honest environment. It also verifies the qualifications and education of those applying to become a mortgage loan originator. You can learn more about this step here. Take note that you’ll also need to pay some non-refundable fees. 

5. Apply for Your Mortgage License

Before applying for your license, refer to your state’s requirements on the NMLS website. In most cases, you should have passed your exam, paid the licensing fee, and authorized a credit report to get a license. You’ll receive your license and work as a mortgage broker once your state approves your application. Check this link for more help with this step.

6. Associate Your NMLS Record With Your Employer

Your mortgage license will initially be in a pending status. You need to connect your NMLS account with an employer to change this. That way, the government will know about your employer’s sponsorship. You can see more about how it works here. Moreover, consider forming relationships with individuals and companies to help you get started. Although it’s entirely up to you whether you want to work alone, building partnerships can connect you with potential clients. 

7. Continue Your Education and Training

Your mortgage career will be an ongoing process, and success requires constant training and education. Maintaining your license involves completing continuing education classes to help your clients receive the latest loan information. You’ll find that there are many courses online to choose from that aim to improve your industry knowledge further. To stay current in your field and enhance the value of your service, try to stay connected with other mortgage professionals. They can also share more advice on how to get into the mortgage industry and succeed. 

Get Started on Your Mortgage Career Today

After learning how to get into the mortgage industry, your next step is registering for a pre-license course today. Whether you need pre-licensing education or a continuing education course, Mortgage Educators is your one-stop online resource. 

When you plan to have a career in the mortgage lending industry, you must complete the required state-specific education hours and pass the licensing exam. But before you can take the SAFE MLO test to obtain your license, you need a unique identifier from the Nationwide Mortgage Licensing System, commonly known as the NMLS number.

Below is how to get a mortgage license number.

1. Determine If You Need an NMLS Number

Not everyone working in a lending institution or mortgage company needs to have an NMLS number. Before applying for one, find out first if it is required in your line of work.

If you’re a loan officer employed in a mortgage company regulated by the federal government, you should register for an NMLS number. Generally, the process begins with your employer, who must be licensed with or registered in the state through NMLS.

Be sure to double-check that you need an NMLS number before you start registering for the license application.

2. Be Prepared to Fill Out the Proper Form

NMLS permanently assigns a unique identification number for each entity. As an individual mortgage loan originator, you have to complete Form MU4R to register.

The form will require detailed information about yourself, your residence, employment history, and involvement in financial services-related businesses. Also, you must answer disclosure questions regarding financial, criminal, civil judicial, and regulatory action.  

Prepare how you should answer the form by reviewing the required fields. Refer to the definitions outlined for the answers. However, if you have further questions, ask a regulator or expert.   

3. Create an NMLS Account

Getting your NMLS number is all done online. You must have an account on the NMLS website first to fill out the form and submit it.

Your employer can create the NMLS account on your behalf. You’ll receive a notification on the registered username and temporary password, ideally updated into something stronger for better security.

Another option is to request an account by yourself. This way, you’ll have more control and easier access to your login credentials. Make sure the information you provide for account creation is accurate and complete. You or your company could be liable for erroneous entries.

If you want more in-depth instruction, this short guide will help you.

4. Complete the Entire MU4R Form

Before obtaining your NMLS number, you’ll have to complete the form. If your company initiated registration, log in to your account and go over Form MU4R. Check the information inputted and update as necessary. This will assist you in attesting and submitting to paying for the registration fee.  

If you created your NMLS account and completed the form, proceed to attest and submit your Form MU4R. Then, remit payment to finish registration and receive your unique identification number.

Why You Need an NMLS Number

Before learning how to get an NMLS number, you may be wondering why you need one. 

Regulatory Requirement

Your assigned number is unique and identifies you as the one who offered and originated the mortgage or home loan. It serves to monitor and regulate lending institutions and loan officers, regardless of wherever they conduct business, to avoid unscrupulous practices and activities under the SAFE Act.  

The Federal Bank, Federal Housing Finance Agencies Fannie Mae and Freddie Mac, and Federal Housing Administration require the NMLS number and its disclosure on loan transactions and documents. If you don’t have one, you are not authorized to engage in mortgage lending activities.  

Consumer Protection

For consumers, the NMLS ID gives assurance and choice. They’ll know they’re dealing with a licensed professional who may face regulatory action for misconduct. By entering a loan originator’s unique identifier on the NMLS Consumer Access, they can easily verify credentials, transaction history, and other relevant information.

The available data will largely impact their decision to choose a specific lender and avoid becoming victims of fraud.

Start Your NMLS Process Today

Get started on your future by jumpstarting your NMLS application process today with Mortgage Educators. Besides finding answers to the most commonly asked questions on obtaining your MLO license, we’ll also offer help with additional concerns on how to get an NMLS number.

Since we want you to pass your licensure exam, we offer several preparation courses tailored to fit your budget and needs. Explore our website today to learn more!