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Step-by-Step Guide to Obtaining a Mortgage Loan Originator (MLO) License

The process of obtaining a Mortgage Loan Originator (MLO) license runs through the Nationwide Multistate Licensing System (NMLS), but licenses are issued by individual states. Each state has its own requirements, fees, and procedures, so it is essential to review your state’s specific guidelines before applying. Below is a general outline of the process:

1. Create an NMLS Account

  • Visit the NMLS website and create an individual account.  You’ll be applying for a state license, so begin by clicking on Getting Started: State-Licensed Individuals
  • This account will be used throughout the licensing process and for managing your license in the future.  By creating your account, you’ll be issued your NMLS ID Number.  Make sure to write this number down and memorize it as soon as you can!
  1. Register for Pre-Licensure Education (PE)
  • Enroll in at least 20 hours of NMLS-approved education, which includes:
  • 3 hours of federal law and regulations
  • 3 hours of ethics, covering fraud, consumer protection, and fair lending
  • 2 hours of training on nontraditional mortgage products
  • Additional state-specific education if required by your state
  1. Pass the SAFE MLO Test
  • Schedule and take the SAFE Mortgage Loan Originator Test
  • Passing this exam with a score of at least 75% is required to complete this requirement
  1. Complete the MU4 Form
  • The Individual (MU4) Form serves as your official license application.
  • You will submit this form through your NMLS account, including personal information, employment history, and disclosures.
  1. Complete Background Checks
  • Criminal Background Check
  • Schedule an FBI background check fingerprinting appointment through your NMLS account.
  • You may have to complete an additional state background check
  • Credit Report Authorization
  • Authorize NMLS to obtain your credit report as part of the financial responsibility review.
  1. Secure Employment and Sponsorship
  • MLOs are required to be sponsored by a state-licensed mortgage company.
  • Your employer must submit a sponsorship request through NMLS to officially associate your license with their company.
  1. Pay Licensing Fees
  • Be prepared to pay application fees, which may include:
  • NMLS processing fees
  • State licensing fees
  • Background check and credit report fees
  1. Monitor Your Application Status
  • Regularly log in to your NMLS account to track the status of your application.
  • If additional documentation or corrections are required, respond promptly to avoid delays.
  1. Maintain Your License
  • Once licensed, you must complete annual continuing education to stay compliant.
  • Each state has its own renewal process and deadlines, so be sure to stay informed of your specific requirements.

By following these steps and reviewing your state’s specific licensing requirements, you can successfully obtain your Mortgage Loan Originator license and start your career in mortgage lending.