How to Become a Mortgage Loan Officer Without Experience
If you’re interested in becoming a mortgage loan officer (aka MLO) but do not have any experience, you may not know where to start. While many loan officers begin their careers by working their way up from entry-level financial services positions, you may be surprised to learn that previous experience in the field is not required. But regardless of previous experience, there is a series of steps involved in becoming a mortgage professional; fortunately, the process is less complicated than you may think.
Meet the Basic Requirements
Before you can become a licensed MLO, there are some basic requirements that hopefuls across all states need. You need to be at least 18 years old and hold a high school diploma or GED. And while a college degree can be beneficial in your quest to become a mortgage loan officer, it is not required.
Next, you must register with the Nationwide Multistate Licensing System and Registry (NMLS). Due to the sensitive nature of the information mortgage loan officers are entrusted with, you’ll also need to be able to pass a thorough FBI background check. Crimes involving fraud, forgery, and other activities involving money or finances are enough to disqualify you from pursuing a license. As a part of your background verification, you will undergo fingerprinting with the required or preferred vendor in your state. You’ll also need to submit a credit report.
 Know Your State’s Requirements for MLOs
Although all prospective mortgage loan officers must take Pre-Licensing education, certain states have their own additional requirements to process your application. For example, some states, in addition to the 20 hours of pre-licensing education, require completion of additional courses that are relevant strictly to that jurisdiction. Different states will also have different fee schedules, application deadline dates, and preferred fingerprinting vendors. Make sure that you are familiar with the requirements of the state for which you hope to get licensure.
Take MLO Pre-Licensing Courses
Mortgage loan officers are licensed professionals. But before they can test for their license, they must enroll in education courses that teach them the rules, regulations, and laws regarding their profession. All MLOs are required to have 20 hours of Pre-Licensing education that is approved by the NMLS.
Pass the SAFE MLO Exam and Get Licensed
One of the final steps to becoming a mortgage loan officer is to pass the Secure and Fair Enforcement for Mortgage Licensing Mortgage Loan Originator exam. Known as the SAFE MLO exam, this national exam is required of all prospective MLOs and was enacted due to the 2008 mortgage crisis. The test consists of 125 questions that cover a mix of general mortgage questions, ethics, federal mortgage laws, loan origination duties, and state content. A score of 75% is the threshold to pass the exam.
How to Find a Job as an MLO
Develop Soft Skills
As a mortgage loan officer, while your primary duty is to assist homebuyers with finding a loan product that is well-suited to their needs, you will also need to develop a set of soft skills which you’ll put into practice every single day. For example, being a strong communicator is important in the mortgage industry. As an MLO, you will need to know how to speak with your clients and articulate complex information in a way they will understand. You’ll also need to have time management and problem-solving skills, and being self-motivated and detail-oriented won’t hurt, either.
Without previous experience, developing these skills will not only help you in your career, but will also make finding a job as an MLO that much easier.
Prepare a Solid MLO Resume
You may be wondering how to draft a convincing resume to get hired as an MLO without experience. The top MLO resume tip that accomplishes this is to relate the job duties and abilities from your previous positions to the duties of the position you desire. For example, if you previously worked as an executive assistant, you can explain how you are adept at handling paperwork (aka detail-oriented), managing a full calendar (aka time management skills), and developing and maintaining strong relationships with others (aka a strong communicator).
Apply to Entry-Level Positions
Register on career sites such as LinkedIn and Indeed and start searching for entry-level MLO positions. These sites often have a way to narrow your search by location and career level so that you can see which companies are hiring newer loan officers in your area. As a part of your job search, you want to research the companies that you are interested in to determine whether it’s an atmosphere in which you can thrive, salary prospects, and other important aspects of your career.
If you’ve decided that becoming an MLO is the right move for you, discover what The CE Shop has to offer you!