How to Get a Mortgage License
Being a professional mortgage broker is surely the dream of many people these days. However, before you can legally practice as a broker, you will be required to have your own license first.
And when this is concerned, there is a process that you should follow regarding how to get a mortgage license.
The mortgage industry requires all persons involved to acquire their own legal license. This is actually considered as the very first step before you can practice in the mortgage industry.
Getting Started in the Mortgage Industry: A Place to Earn an Income
The industry of mortgage is one place where you can actually start to earn a decent living or start your very own business as a lender of mortgage. If you want to learn how to acquire your own license, it will be great if you can talk to someone who is already a part of the mortgage industry who might be searching for a mortgage broker. The persons who have long been associated with the mortgage industry are expected to have a good comprehension of the regulations of the state when it comes to the license as a mortgage broker. It is a must that you utilize all tools you have before you actually venture into your newest career as part of the industry by looking for the regulations that concern getting a license.
First Things to Know
The initial thing that you have to remember if you want to be licensed as a broker in several states would be the fact that each of these states has differences. Generally, during the past ten years, each state in US has already developed its own schemes in licensing. The congress have passed a bill that requires all mortgage companies, their branches as well as the loan officers to acquire their own licenses. The bill also designates a specific regulatory agency like the Department of Financial Institutions in each state to create a plan on how to license all the people required as stated in the bill that the state congress passed.
The State Requirements
Almost all US states have the following prerequisites when it comes on how to get a mortgage license:
- File for a Certificate of Authority as Foreign Entity
- Registered agent
- Surety bond
- Officer information and detailed ownership
- Final application
The Importance of the 3 Es: Experience, Education, Exams
Each of the states will ask for evidence that the aspiring mortgage broker has sufficient experience and knowledge that will be needed in running his own mortgage company. Typically, the state will call for one to three years of experience as a company’s principal officer. Initial education is also required and a continuing education is mandated so that license can be renewed. Approximately five states require exams for the principal officers. And despite being knowledgeable about the federal laws, examinees must still study for these exams also have questions on state law.