Tag Archives: regulations

10 Steps To Becoming a Mortgage Loan Officer

We receive questions on a regular basis concerning the process to become licensed as a loan officer.  Becoming a mortgage loan officer can be as simple as 1.. 2… 3…, or actually 1 to 10.

Step 1:  It all beings with the State where you want to be licensed

Each state will require a minimum of 20 hours of pre-license education.  In addition, some states may require certain state-specific education.
Check your state requirements here:  State Licensing Requirements

Step 2:  Enroll in a pre-license course with MTI – That’s so easy… just click the link below.

Get me into a class now!

Step 3:  You’re going to need an NMLS ID number – that’s simple too… just a few minutes.

You will need to create a user account with the Nationwide Mortgage Licensing System and Registry (NMLS).  There is no cost to do this and it only takes a few minutes.  Select the link below then select create an “Individual Account.”
Need My Number Please

Step 4:  School Time!  Complete your pre-license education

Step 5:  The work beings.  Study, Study, Study

Be sure to prepare yourself for the NMLS national test.  Most students will spend 40-60 hours of study to prepare.  It’s not an easy test, but if you follow the instructions of your fabulous MTI instructor, you should be prepared!


Step 7:  Where do you want to work?

Finding the right place to work as an MLO might take a little time.  If you know someone in the industry, find out where they work and why.  You’ll want to find a company that has your values and provides the right customer service you intend to provide.  Loan officer compensation can vary from company-to-company, but money shouldn’t be your only consideration.  Remember if the company isn’t run well, your compensation won’t matter, because you won’t close any loans!  But, now that you’re ready to be licensed, there will be many companies in your area wanting to hire you!

Step 8:  Complete your registration with NMLS and file your papers with the state

The job is never complete until the paperwork is done.  You will need to complete your NMLS registration using your NMLS account, complete your fingerprinting and file your MLO license application with the state.


Now it’s official… you’re a licensed mortgage loan officer!  After you’re done partying, it’s time to start helping!

Step 10:  Help hundreds achieve homeownership!

Now you’re a well-educated, licensed, loan officer and it’s time to turn your attention to helping hundreds of consumers in your area make one of the largest financial decisions of their life… how to properly finance their home.  Because you are well-trained, you’ll be there to guide them to the right decision and you’ll be there to make obtaining a mortgage a pleasant experience.  Along the way, you may make a lot of money… and that’s not bad at all!


Visit our website for more information and skills-development courses – MTIProEd.com

The New Mortgage Language

Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act, Sections 1098 and 100A) directed the CFPB to combine certain disclosures that consumers receive in connection with applying for and closing on a mortgage loan under the Truth-in-Lending Act and the Real Estate Settlement Procedures Act.  Effective August 1, 2015, the integrated mortgage disclosures rule goes into effect.

Part of the new rule, will change the terms mortgage industry professionals use and the forms consumers will receive during the loan application and loan closing.  The Good Faith Estimate, Truth-in-Lending Disclosure and HUD-1 Settlement Statement will be eliminated from the loan process and replaced with the Loan Estimate and Closing Disclosure forms.  In addition, new terms will be included in the forms; Total Interest Percentage and Approximate Cost of Funds.

The Good Faith Estimate and the Initial Truth-in-Lending Disclosure will be replaced with the Loan Estimate and the HUD-1 and Final Truth-in-Lending Disclosure will be replaced with the Closing Disclosure.  Both of these forms will be consumer friendly and will take on a similar look and design establishing a sense of familiarity for the consumer.

Both new disclosures will include a new term, Total Interest Percentage or “TIP.”  Though different than the TIP provided to the food server at your favorite restaurant, it does show the borrower the percentage of total payments made over the life of the loan that is interest and for a normal 30 year loan this can be in the high 60s.  The new term Approximate Cost of Funds (ACF) is found in the Closing Disclosure and reflects in a percentage how much the borrower is paying in non-loan related charges.

Most of the soon to be replaced disclosures have been part of the mortgage lending industry for almost 40 years.  We have grown accustom to their presence, but as we move forward these new disclosures will not only change the appearance of our documents, they may also provide something we’ve long needed, disclosures a borrower might actually understand.