Loan Officer With Bad Credit And Get Licensed

Can You Become A Loan Officer With Bad Credit and Get Licensed

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide covers about can you become a loan officer with bad credit and get licensed. A career as a mortgage loan officer can be extremely rewarding. However, there are steps to becoming a licensed loan officer.

Once you have accomplished those steps, you will have great career opportunities as a loan officerwith the many great mortgage companies needing loan officers. We will cover the necessary steps in becoming a mortgage loan officer,

Especially the mortgage licensing requirements. One of the most asked questions by many mortgage loan originator recruits is, ” Can You Become A Loan Officer With Bad Credit.” I will cover this topic in-depth and tell you about my experience with bad credit when I went through the mortgage licensing process.

How To Become Licensed As Loan Officer

Becoming a licensed mortgage loan originator differs from being a licensed professional in any other field. This is because every mortgage loan originator applicant goes through an intensive credit background check. Attorneys, real estate agents, stockbrokers, financial planners, accountants, doctors, dentists, nurses, teachers, and other professionals do not go through credit background investigations by federal and state regulators like licensed mortgage loan officers.

Mortgage Regulations

I cannot think of any other profession where federal and state regulators require credit background investigations: Every state regulator a candidate wants to apply for a license will review the licensee’s credit report, credit payment history, and credit scores other than a licensed mortgage loan originator. The main reason that mortgage loan originators go through a credit background check is that the government decided that a loan officer’s credit is important in determining whether they warrant financial responsibility. A candidate’s credit is deemed whether a mortgage loan originator has financial responsibility. By reviewing candidates’ credit and credit payment history, regulators determine whether or not they are fit to be a licensed loan office; Many disagree with this.

Getting NMLS License Due To Derogatory Credit Tradelines

This is because hard-working people, in general, can go through tough times, such as unemployment, loss of business, and divorce. Periods of health problems. Or other extenuating circumstances where their income stream is halted or disrupted where it is affecting their ability to pay their bills on time

Can You Become A Loan Officer With Bad Credit After The 2008 Real Estate And Mortgage Meltdown

The Great Recession of 2008 has affected millions of Americans. Countless hard-working Americans have lost their businesses and jobs, and whole industries were eliminated. Real estate professionals, especially mortgage loan officers, were the single largest group affected by the real estate and mortgage meltdown in 2008. Entire mortgage lending sectors were eliminated. Subprime mortgage lending was one of the largest mortgage lending sectors in the mortgage banking industry.


The Demise Of Subprime Lending

All subprime lenders like Countrywide and Washington Mutual went bankrupt overnight: With the shutdown of these giant corporations, millions of jobs were lost. Mortgage professionals in these industries were jobless. To top it off, the mortgage industry went through a major overhaul where all mortgage loan originators needed to get licensed, undergo intensive federal and state background investigations, and take the NMLS Examination. The NMLS was created and implemented.

Its purpose was to be a central informational center where it is a consolidation of all states and their regulators. Its function was to centralize the licensing and information system of all mortgage companies and all mortgage loan originators. All mortgage loan originators had to take NMLS certified 20-hour pre-licensing course.

They needed at least 75% of the questions correct on the NMLS examination. All mortgage loan originators also needed to apply for each state they wanted to get licensed in, pass the state exams, and go through the state’s licensing requirements. Each state has its licensing requirements, which include its different credit requirements. Some states are much more strict regarding bad credit than others.

Can You Become A Loan Officer With Bad Credit And Case Scenario Of My Own Experience

Become A Loan Officer With Bad Credit And Case Scenario Of My Own ExperienceI used to own and manage 7 apartment complexes, just under 3,000 residential units: Due to the 2008 Real Estate And Mortgage Meltdown, I lost all of my properties and suffered a financial meltdown in 2010. Had to restart my life over again. I was in my mid 40’s at that time. Getting an entry-level job in a different field was out of the question. Due to my extensive real estate investment experience and my commercial and residential lending knowledge, I decided that a career as a mortgage loan officer would be ideal. I found out then that part of the licensing process was going through a credit background check. My credit was always perfect until 2010. It plummeted to the low 500’s. I had over 55 derogatory credit items.

Every State Has Its Own Rules With Derogatory Credit Tradelines

My derogatory credit included outstanding unpaid collection accounts, multiple judgments, charge-off accounts, multiple foreclosures, and other derogatory credit items: I contacted the regulators for Illinois and Florida.

In the two states I wanted to get licensed, but the regulators told me they could not answer whether or not they would approve me with the credit I had at the time.

I told them that I did not want to waste my time and money preparing for the NMLS test and go through the licensing process to find out later that I did not qualify for my poor credit. The answer that I got was that I needed to go through the process. I was told after I submitted my application, along with the proper fees, that they would then give me an answer.

The Key To Passing The 125 Question NMLS Exam

Paying the fee was not the issue here. The NMLS exam was very tough and extremely time-consuming. This was a very difficult time when I had no source of income, and taking a month or two off to study and prepare for the NMLS exam was a major commitment.

To go through the 20-hour pre-licensing course to later find out that I do not qualify to get a mortgage loan originator’s license would be more than devastating and two months wasted. I must have contacted the state of Florida and Illinois examiners dozens of times, hoping to get someone there to give me a straight answer.

If someone there had told me NO, that I do not qualify due to my poor credit and outstanding collection accounts and judgments, that would have made me happy so I could pursue other career opportunities. But they did not give me a NO, YES, or even a MAYBE. When I met him, my first question was, ” Can You Become A Loan Officer With Bad Credit?” Peter Citera, like mortgage regulators, did not have a definitive answer to my question.

Taking A Gamble Without An Answer

This was January 2012, and I decided to take the gamble and take the 20-hour pre-licensing NMLS Course with Real Estate Institute in Niles, Illinois. It was a three full-day course. The instructor who taught the course was a gentleman named Peter Citera. Peter Citera was an extremely knowledgeable instructor at the Real Estate Institute in Niles, Illinois, and a practicing licensed mortgage loan originator.

My credit report was dozens of pages of bad credit. It consisted of outstanding unpaid collection accounts, judgments, charge-offs, late payments, and other derogatory credit.

I was still ready to call it quits and not pursue my NMLS license if someone told me I would not get a mortgage loan originator’s license due to my bad credit. This was because I did not want to go through the stress of studying and preparing for my NMLS Test and go through the licensing process to be told that I do not qualify for my mortgage license due to my poor credit.

Uncertainty About Getting My NMLS License Approved

Here I was, studying for the national NMLS exam for the next four weeks, investing more than 10 hours per day, seven days a week, with the uncertainty of not knowing whether I would ever get my license. I Googled search every day on the internet looking for answers on whether you can become a loan officer with bad credit and got conflicting answers.

Applying For My Mortgage Loan Originator’s Licenses

It has now February 2012, and after going over 1,000 practice exam questions and spending hundreds of hours studying for the NMLS exam, I was ready to take the national NMLS Test. The test was a three-hour examination given at a test center. I was done with the exam in less than 90 minutes. I passed the national NMLS Test with a score of 84%. I was happy, but the thought of being unable to get my mortgage license was stressing me out.

The next step was for me to take the Illinois State NMLS Exam, which I studied for it and passed the following week. Now I was ready to apply for my Illinois mortgage loan originator’s license. I applied for my Illinois mortgage loan originator’s license through the NMLS and paid the proper fees.

Within two weeks, I got the great news that Illinois had approved my mortgage loan originator’s license, and I was ready for business. I could not be happier, and it was one of the happiest moments of my life when I got my Illinois mortgage loan originator’s license, and the many weeks of stress and worrying finally ended.

Applying To Various States

The next state I applied for was the state of Florida. Florida, again, approved my Florida mortgage loan originator’s license with bad credit. When I applied for my Illinois and Florida state licenses, my credit scores were under 500 FICO. Both state regulators wanted to see a letter of explanation about my poor credit, open outstanding unpaid collection accounts, judgments, and other derogatory credit information.

I have also not filed my personal and corporate income taxes since 2008 because of financial constraints. My accountant wanted over $100,000 for him to do my corporate and personal tax returns due to having to file seven corporate returns due to the 7 Limited Liability Corporations

I had to do it, and the complexity of it. The IRS eventually helped me complete all of my returns (I will write about how the IRS and special agent John Hedin, who turned out to be a great friend of mine, helped me with being compliant with my corporate and individual taxes and do my tax returns on a later blog). So, Can You Become A Loan Officer With Bad Credit? The answer is YES and NO. I was now very confident that I could become a mortgage loan originator in any state with bad credit. However, that is not the case.

States Where You Can Get Denied For MLO License Due To Bad Credit

I live in Kenosha County, Wisconsin, on the border of Wisconsin and Illinois, and my branch office is in Illinois, about an hour from where I live. Since I live in Wisconsin, I applied for my Wisconsin mortgage loan originator’s license in April 2013.  You see, I did not just have bad credit. I had really bad credit. My background was that I owned, operated, and managed 7 apartment complexes with just under 3,000 units and over 150 employees.

I figured it would be no big deal to get my Wisconsin mortgage loan originator’s license approved. I just assumed it would be a cakewalk because I had no issues with the state of Illinois and the state of Florida.

Unfortunately, two weeks after I submitted my Wisconsin mortgage loan originator’s license application, I got an email from a Wisconsin mortgage regulations investigator telling me I could not qualify for a Wisconsin mortgage loan originator’s license. I will explain on a separate blog how I lost $100 million of my net worth in less than a year due to Citibank’s lies and unscrupulous practices (It will be an interesting story on how commercial banks are not regulated and borderline criminal).

Can You Become A Loan Officer With Bad Credit And Outstanding Judgments

The reason I do not qualify is that I have multiple outstanding judgments which are recorded on Kenosha County public records. I told her that the judgments were due to my commercial properties being foreclosed on any of my $14 million mansion that was foreclosed on in Barrington Hills, Illinois.

Also that the lenders who were the judgment creditors were leaving me alone. The mortgage licensing investigator told me that the unsatisfied judgment needs to have a written payment agreement. That cannot be ignored if I wanted my Wisconsin NMLS license. I told her then that I would enter into a $50 to $100 per month payment agreement and will that be okay. She told me NO. One of the judgments was $6,000,000.

I needed to enter into a written payment agreement with the judgment creditor for at least 5% of the unpaid judgment amount or a monthly payment plan for $30,000. I told her that I could not do that. How can I come up with $30,000 per month? I spoke with the supervisor, and it was like talking to a brick wall. Long story short, the state of Wisconsin would deny my Wisconsin mortgage loan originator’s license due to my prior judgments and bad credit. I ended up withdrawing my Wisconsin mortgage loan originator’s license.

Can You Become A Loan Officer With Bad Credit: Depends On The State

The good news is that I am now licensed in California, Ohio, Alabama, New Jersey, Virginia, Illinois, Florida, and Kansas. Can You Become A Loan Officer With Bad Credit?

Yes, you can become a loan officer with bad credit, depending on the state you apply to. If you have any questions about getting your mortgage loan originator’s licenses with bad credit or are interested in joining my team as a mortgage loan officer, please contact me via email at

I am available seven days a week, evenings, weekends, and holidays to answer your phone calls and questions. I must have contacted over three dozen states. I talked to their mortgage licensing division and got the same answer: they could not answer my question. The only thing I can do is pass the NMLS exam and apply for my mortgage loan originator’s license, which is the only way I can find out.


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  1. This helped me. I’m applying for a job as a loan officer and I’m concerned about my credit. I feel a little my confident about getting my license

    1. No worries. You will do fine. Don’t let anything get in your way to the road of success. I respect your ambition and don’t let nothing get in your way. 😉

      Gustan Cho

    2. Good evening. First I would like to say thank you so much for taking the time to create the blog with all that very helpful information.

      I am a licensed loan originator in the state of Florida for many years. I recently had to have some medical procedures done that my insurance wouldn’t cover. Most notably roughly $15,000 worth of sleep apnea surgeries.

      I have very severe sleep apnea and it causes me to be exhausted every day. It’s made life every day very difficult. The surgeries were an absolute necessity to try to restore some decent quality life.

      There was one other medical procedure I had done recently as well. I have a bill of about $8500 on that.

      And finally I also have about $4000 in an old bill from an old emergency room visit.

      All this totals about $27k in medical related credit loans and medical bills that I have at this time.

      My credit is decent (655 mid FICO) and there’s no derogatory items or late payments or any collection or charge offs.

      If these three accounts were to go to collection would this disqualify me from being able to renew my LO license in Florida?

      I sincerely look forward to your response. Thank you so much in advance.

      1. In most states, medical collections do not matter. You should be fine with outstanding medical collections as long as you can provide a good letter of explanation. Feel fee to contact us if you have any other questions. The very best to you.

    1. do you know which states, other than cali, that don’t look at credit. I just called az dfi and they said they do not look at credit but it is important to disclose for when you apply in other states that might

  2. I have a loan officer who applied for a Texas MORTGAGE LOAN ORIGINATOR License with a second mortgage charge off that was six years old. She had perfect credit besides the charge off. Texas was about to deny her MLO LICENSE so she withdrew her MLO LICENSE application. She went through credit repair and got her charge off removed from her credit report. She reapplied for her TEXAS MLO LICENSE and she got it approved.

      1. I do not recommend credit repair. Credit disputes are not allowed during the mortgage process. We ignore charged off accounts.

  3. The state of Texas looks at everything, and they check and double check so that they do not miss anything so if you are trying to get your loan officer license with bad credit, please consider getting your credit in order before starting the process of getting your license please.

  4. Hi!

    I’m glad i came across this. My name is Justin, I’m a 24 year old male located in California. I recently had my interview with a mortgage Company in Sacramento CA, I’m worried that my credit will hold me back from becoming a loan officer.. My credit it is in the mid 500’s around 550-560. I have no late payments on my record at all.. The only open accounts I have in collection are all medical.. Which was due to them switching everything in my name as soon as I turned 18.

    I really want a career in this industry. Do you think that will hold me back at all in my state ?

    Thank you for taking your time to answer my concern.

    1. California does not even look at credit scores so I would not worry about it. Texas, Connecticut, Oregon are one of the toughest states for credit issues

      1. California does not even look at credit scores so I would not worry about it. Texas, Connecticut, Oregon are one of the toughest states for credit issues. If you have any question, please feel to reach out to me.

        Gustan Cho NMLS 873293
        Area Manager
        The Gustan Cho Team

        1. Hi Gustan, I do have 4 collections right now and credit score is 619 and I am applying for my Oregon, Texas licenses. Will I have issues in doing so?

          1. You will definitely have issues in Texas. Texas will require you either to pay the collections in full and/or enter into a written payment agreement. Other states such as California, Illinois, Ohio, Alabama, New Jersey and many others will not matter.

    2. Justin,

      My name is Gustan Cho NMLS 873293 and I am the Area Manager for The Gustan Cho Team. You have nothing to worry about in getting your California NMLS SAFE license in the state of California. California does not even look at credit scores nor credit reports so you can rest assured that it will not effect you getting you license. There are states that do care about bad credit such as Texas, Wisconsin, Oregon, and Connetticut. Please feel free to call me or text me at or email me at

      Gustan Cho NMLS 873293
      The Gustan Cho Team

        1. California does require credit checks. All state regulators are required to run a credit check on all MLO applicants. Therefore, you will be charged a fee.

  5. I have a question, what about NEW Jersey? That’s my goal of becoming a license loan officer, but my credit score I’d below 620 and have late charges and two collection. Thanks, Maria

    1. Maria,

      There are certain states that really care about a loan officer credit scores such as Connetticcutt, Texas, Wisconsin, and Oregon. However, New Jersey does not care about credit scores. Other states that are lenient are Illinois, Florida, Ohio, Alabama, Indiana, Virginia, Alabama, and many others. California does not even look at the credit reports. Please feel free to contact me on the number below if you have any other questions or if you are interested in a career with The Gustan Cho Team NMLS 13589

      Gustan Cho NMLS 873293
      Area Manager

      1. Gustan,

        Thank you for writing this blog. I gives many confidence to chase their goals. I’m in Florida and I’m worried about my credit scores which are 612 – 622 Derogatory’s stem from a car accident which damaged 3 levels of my cervical spine & my lower back! I had one surgery which I had a bad recovery that put me out of work for over a year. Unexpected life happens no matter how much you plan. No way to pay debts and no income to live mounted more debt. I hope Florida would be worth while to study for based on your info. I would even like to work for you if you need processor/ originators from Florida remote.

        1. All states have tightened up on derogatory credit. Credit scores do not count. Medical collections is understandable. However, you may have to enter into a written payment agreement with your creditors and/or file bankruptcy

    2. New Jersey is like California. They don’t even look at credit scores or credit.. Connecticut is a different story. As long as your DLA was at least 6 or more months, you will have no issues.

      Gustan Cho NMLS 873293
      Gustan Cho Associates
      The Gustan Cho Team

    1. Bad credit is a very general broad term. If you had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, that is alright. Regulators look at the candidates overall credit report and payment history. If you can be more specific, I may be able to answer your question.

      Gustan Cho NMLS 873293
      Area Manager
      The Gustan Cho Team

    2. I really do not know about Minnesota. One thing you need to realize is that bankruptcy and foreclosure or short sales don’t matter. Some states like Wisconsin, Connecticut, Texas, and Oregon cares about charge offs and collections where they want to see a payment plan. Connecticut requires one year after Chapter 7 Bankruptcy and Oregon has 5 years after bankruptcy discharged date. This requirement is illegal but they still do it
      Once Obama is out of office, I think this will change.

      Gustan Cho NMLS 873293
      The Gustan Cho Team
      Gustan Cho Associates

  6. Thanks for the quick response. To be more specific with bad credit. It is collection and judgement and charge off for revolving debt due to joining debt consolidation program.

    1. As long as you have been timely in the past 12 months, most states don’t care about past bad credit. They don’t look at credit scores. They just look at past 12 months payment history. I hot Florida and Illinois approved with a 480 credit score. Don’t worry about it. Save your worries on other things that matter
      Call or email me if you need more clarification.

      Gustan Cho NMLS 873293

      1. I have been out of the industry for awhile, but I now would like to resume my career as a L.O. , however I was licensed in six states (New York, Michigan, Utah, Texas, North Carolina & New Mexico) and I am considering filing for bankruptcy. Will I be able to renew my previous licenses? My current FICO score is approx. 532. Bad I know…due to a medical condition that left me unable to work and collecting disability…hence my financial state.

  7. I have been asked for an interview from a mortgage company in Missouri. My credit is poor I filed bankruptcy 2 years ago did a deed-in-lieu back in 2009 everything went bad due to Medical reasons. Health is better but stuck with all the bills which are on my credit report. How does Missouri handle poor credit for being a loan originator. Thank you

    1. Hello, I would like to get my mortgage originator license in Colorado but am worried because I had to file a chapter 13 bankruptcy about 6 months ago. Are you familiar with the criteria of COLORADO in regards to credit scores and bankruptcies? I don’t want to spend all my time going through the courses and taking the test if I’m going to get denied because of my bankruptcy. Thank you in advance!

      1. You are fine and will not have any issues with any states as long as you filed Chapter 7 and/or Chapter 13 Bankruptcy. Just be timely on all of your payments to the Trustee and you will have no problems. Bankruptcies is a federal law that allow consumers start a fresh financial start in life. The best to you. Feel free to contact us with any further questions.

        1. I was a mortgage Broker Business for over 9 years till the crash. I was scared to restart.I fell back on my second career as a medical Assistant till the hurricane Irma. I fell behind in my mortgage payments because I was told the payments would be put on the rear of the mortgage. This was false information, all was due at once. I did a Chapter 13 for 12 months, never miss a payment. Reestablished my credit. 2 new credit cards. Mortgage is current. Do you think with 12 on time payments that Im safe to apply here in Florida and tennessee ?

  8. I was told by an employer after a review of my credit that I could not get a mortgage loan originator license unless I entered payment plans with all creditors in Michigan. It has been six years since the medical problems I had resulted in an 8 month hospital stay and loss of job, apartment, credit cards, plus medical bills. I told them that on the phone. Some of the negative accounts have begun falling off and I do not want to enter into payment arrangements as that would restart the clock. My credit score is 638 right now. I currently hold a MI Salesperson license as a Realtor and had no idea that the requirements to be a loan officer were based off credit.

    1. Your employer is full of it. Please contact me at or call me anytime on my cell phone at 262-716-8151. I will help you and you can even work for me.

      Gustan Cho NMLS 873293
      Area Manager
      The Gustan Cho Team

      1. Hi Gustan,

        You have given me a bit of a piece of mind for my husband and I. We will be taking a 20-hour course in the coming weeks and testing! In 2017, I had knee surgery and could not work for some time which put some derogatory marks on our credit. We are looking to get licensed in GA (I don’t see this state mentioned here), but are also in close proximity to FL. Do you personally think we will have a hard time? If it comes down to it (which we plan on anyway once we hopefully do become MLO’s) we will definitely set up payment plans with the companies we have derog marks with (some are medical, but some are not).
        Please let me know what you think.

        1. Both Georgia and Florida do require written payment agreements on non-medical collections and/or charged off accounts and that you make timely monthly payments to your creditors. Or if your outstanding collections and charged off accounts are substantial, you may want to explore filing bankruptcy. Bankruptcy discharge will not affect you getting licensed in any of the 50 states. This is what happened with me. I did not qualify at many states due to my large outstanding collections, charge off accounts, judgments, so I filed bankruptcy. I then reapplied to all of the states my company was licensed in and I got approved in all the states without a single hiccup. My credit scores are over 700 in less than a year after my bankruptcy discharged date. I hope this answers your questions. Let me know if you have any other questions.

  9. I’m in DC and the company that wanted to hire me withdrew their offer because I recently had a discharged BK7. DC’s licensing website wasn’t very clear in terms of creditworthiness or financial responsibility requirements. Is there a certain amount of time I need to wait after BK before applying for licensing or will a letter of explanation suffice.


    1. Tosha,

      There are no rules that a company not hire you because a Chapter 7 Bankruptcy discharge. We are a national FANNIE/FREDDIE Direct mortgage lender licensed in 50 states and we do not have such policy. Same goes with licensing. Most states like that you have filed bankruptcy because you are now debt free and have no liabilities. There are certain states like Connecticutt that has a one year mandatory waiting period after a Chapter 7 Bankruptcy discharged date and Oregon where it has a five year waiting period after a Chapter7 Bankruptcy. If you are looking for a remote loan officer position with a great national mortgage company with chances of advancement, please contact me at

      Gustan Cho NMLS 873293
      Area Manager
      Toll Free Direct 1-800-900-8569
      Cell 262-716-8151
      Direct 262-878-1965
      Available 7 days a week

      1. Hi Gustan! Thanks for all the helpful info you have provided. I live in Louisiana and am interested in getting licensed. However, i split with my ex earlier this year and went through some financial trouble with also being laid off from my job. I am planning on filing a chapter 7 soon and would definitely be interested in hearing your thoughts about when is the best time. My credit has fallen below a 500 and i do have several collections and charge offs right now. I would also
        like to hear more about remote loan officer positions that you may have available.

        1. Credit scores do not matter with regulators. Bankruptcy is good. A bankruptcy is a federal law that enables consumers to get a fresh financial start. You will have no problems with getting licensing with a recent bankruptcy. Connecticutt requires a one year waiting period after a bankruptcy. Oregon has a five year waiting period. All other states have no waiting period requirements. You should be fine and have no issues if you file bankruptcy with getting licensed.

  10. Hi. I am taking applying for my license and I live in New Jersey. My credit score is low 500’s. I have a few late payments, but mainly my credit is poor from being late student loans and have my credit cards maxed out. I have about 7 cards maxed out. Will I be okay?

  11. Hello Gustan Cho, my name is Silvana and I am thinking of taking my NMLS in Colorado but am worried about my bad credit.Is Colorado one of the States that care about credit score?

    1. Credit Scores does not matter. You can have late payments in the past year and as long as you are current then you are alright. California, New Jersey, Alabama, Arizona, Kansas, Washington normally does not care about collections and/or charged offs. Worst case scenario, if a regulator gives you a hard time, you can enter into a payment agreement with the creditor and that will resolve it.

  12. Thank you for the article. I will be retiring from my current job soon. I am seriously taking steps towards becoming a MLO in California. Before retiring I am getting my FICO scores from good to better. Thanks for the info.

  13. Hi! I’m currently in my 20 hours education process for obtaining a MLO in the state of Colorado. I see that bad credit isn’t an issue and past bankruptcies are ok with 12 months of good payment history. I recently filed for bankruptcy in July of 2017 which was final November 6th 2017 so I do nothethavea year(12months) of good payment history to go off of…will this be a problem and should I wait to apply/take my test till my 12 months after my finalization of my bankruptcy?

    1. As long as you filed Chapter 7 Bankruptcy and it has been discharged, you don’t need 12 months of timely payments. You should be solid. The very BEST to you and your endeavors.

      Gustan Cho NMLS 873293
      Branch Manager of USA MORTGAGE
      The Gustan Cho Team at USA MORTGAGE

  14. I just started with them and I love these people!! They have been very responsive and respectful!! My credit score had went up seventy points in less than a week!!! Awesome!!! Also had student loans that are saying paid in full 100%!! 16,000$ ! Thank you!!’ Thank you God and MASTERCREDIT!!’

  15. I am currently a Loan officer, I am licensed in MN. I am looking into filing bankruptcy, however do not want to lose my license. Do you know will they revoke a license if I do file? Does it matter if it is a chapter 7 or 13?

    1. Good afternoon Jennifer

      Actually filing Bankruptcy is good when it comes to licensing. The only two states there are issues with if you were to get licensing is Oregon and Connetticut. However, renewing licenses is no issue. You need to let NMLS know and upload your discharged papers. Chapter 7 and/or Chapter 13 does not matter. Bankruptcy is a federal law that gives consumers a legal way of restructuring their debts and/or getting their debts discharged. You are set to go and I would not worry.

  16. Hi, I actually had my license previously and let it expire when I went to the operations side for 6 years thinking I would never go back. However, I have decided I do want to go back and have to retake test and apply, etc. I am in Texas and know they are tougher than other states but have heard they aren’t as tough as before. Can anyone help with this? I have some collections in the last year and a judgement from 2006 that I could get in a payment plan on. I just can pay the judgment in full. Any help would be greatly appreciated!

    1. You are correct. Texas is one of the toughest states when it comes to derogatory credit. As long as you have a written payment plan established with the creditor you should be fine. If you are interested in a career opportunity as a remote loan officer with us, please contact Michael Gracz at

  17. I have my MLO for Washington and will be renewing in November. I just got my license, but have been an MLO at a CU where I didn’t need my state license. Anyway, between custody court with my ex and my new husband losing his job for 15 months (reducing our income by $48k/year!) I now have an auto lease repo I’m dealing with. Will WA strip me of my license because of this?

      1. Gustan, I have to say I love this thread and it gave me the push I needed to get into mtg. I passed my safe test (93%) but filed BK in May which was discharged in July 19’. I really want to be licensed in TX but am worried about them denying my license. I’ve already got my credit score up to a 660 but am still very nervous. Any advice would help so much!! Thank you!

        1. You will be fine in getting your NMLS state licenses in any state with the exception of Connecticut and Oregon. Connecticutt used to have a one year waiting period after a discharge. Oregon has a five year waiting period. Congratulations. You are all state in getting your state licenses in any state so no need to worry. The very best to you and your family.

      2. I have a bk from 10 yrs ago but after getting laid off three years ago I ended up with multiple collection accounts, foreclosure process started (but redeemed before judgement or court date) and some slow/late pays. No judgments or tax liens. How difficult would it be to get licensed in Washington in 2020?

        1. No problem. Nothing to worry about. You will not have a problem getting your NMLS license. The best of luck to you.

  18. Hello I have my NMLS with a major company and applying for another and after credit background check, the investigator requested a letter of explanation regarding my Ch 7 BK discharged 3/17. Since then I have made on time payments with one auto loan , one unsecured credit card card, and One retail card. Could they deny me employment ? New company is offering my DREAM JOB !

    1. Bankruptcy is a federal law that has been created to help consumers in debt get a fresh start with their financial life. A company cannot discriminate and not offer you a job due to your bankruptcy. Only federal law enforcement agencies such as the FBI, CIA, can make exceptions. You should be fine. Maybe the company wanted the circumstances that led to your bankruptcy. Good excuse will be loss of job, divorce, medical, loss of business, and/or health issues.

      1. Thank you Gustan! Another question for you. Is it a conflict of interest for a mortgage broker or loan officer to work deals for a spouse or relative ?

          1. Hi Mr.Cho, I filed for bankruptcy back in 2014. Since then I have kept an excellent credit history. However, I stupidly consigned on a loan for a friend’s business to borrow money from an investor to flip a house. I was not involved in the business at all and made no money from the deal. Unfortunately, my former friend lost everything and filed for bankruptcy. Now the investor is suing me for $300,000. I cannot afford to pay this and I’m starting to think that bankruptcy will be my last resort. However, I am an MLO in Florida and I am worried that filing another bankruptcy will lead to my license being revoked. Should I be worried about losing my license and my job?

  19. Hi Gustan Cho, I have recently applied for my MLO license in IL, MI, MO and Virginia. My credit score is not poor, however I have several collections about 35k that was charged off back in 2016. I have not re-established my credit at this point so the only credit on my report is negative. What do you feel the likelihood is that I will be approved by at least 1 of the 4 states? I need to be licensed to continue working where I am at and to start paying on the Debt Management Plan that I recently set up to work towards financial wellness. Thanks for your help!

    1. I dont think you should have any issues with the above states. Credit scores does not matter. Some states like Indiana, California, New Jersey, Arizona do not event look at bad credit. Other states like Texas, Wisconsin, Conneticutt, Massachusetts, Georgia are very anal about it. I had really bad credit when I applied for my licenses. Virginia, Florida, Illinois, Ohio, Alabama, Kansas, California, New Jersey has not given me a hard time. If any states give you a hard time, you may consider filing bankruptcy and/or setting up a written payment plans. Best of luck to you. Email me at if you have any questions.

        1. The very best to you. Do not hesitate to contact me if you have any other questions or are seeking an employer. Always looking for great talent.Have a great day.

    1. Of course. Bankruptcies are good and does not affect you from getting a NMLS MLO License in 48 states. Only two states have issues. Connecticutt has a one year waiting period and Oregon has five years. Both CT and OR requiring waiting period is illegal. Best of luck to you and post any questions you may have.

  20. Hello Gustan Cho I am currently trying to apply for an MLO license in FL. My credit is around mid 500’s but I currently owe in child support and some backed taxes.

    I used to work for countrywide back when licensing wasn’t required. I would really like to get back in this carrier field since this was something I really enjoyed doing.

    Thank you for your input.

    1. Credit scores does not matter. I would get your child support and back taxes on a payment plan and you should be fine.

    1. What type of bad credit do you have that you are concerned about. Many loan officer candidates worry about low credit scores. Regulators do not care about credit scores. It is totally fine for you to have late payments in past 12 months and you are caught up. It is also fine to have outstanding tax liens and judgments and be on a payment plan. Bankruptcies do not affect anyone getting a licensed. Actually bankruptcies are good because its a federal law that gives consumers a fresh start. Please be more specific where I can hopefully guide you the right way. Certain states like Texas, Georgia, Massachusetts, Wisconsin are crazy and want you to pay outstanding collections and/or charged off accounts even though its years back. Most states are reasonable. California does even look at credit and is extremely lenient.

  21. Hi i have been a loan officer for 20yrs working in banks and mortgage companies i move to Tx from Mn about 3yrs ago and can not find a descent mortgage company or bank that will take a chance on higher me i have pass credit problems no bankruptcies or liens i am considering moving back to Mn so but i am not sure how there creidt critier is since they just came on as national test i have passed the test and ave licence in Al/Mo but no bank in Texas will higher me any advise.

    1. I have remote loan officer positions available. Please email me your contact information at Do you have a book of business? How do you get your leads? We are direct lenders licensed in multiple states and specialize in government and conventional loans with no overlays. We also broker loans on non-qm loans, bank statement loans, and other alternative financing loan programs.

    2. a few late payments and a charge off account. I applied for the license in Nevada, and got a notice saying I have to submit documents for credit report clarification. Not sure what that means….

      1. Thank you so much I was just offered a position. I am waiting for their licensure team to contact me back and let me know

  22. Hello Mr.Cho,

    I’m thinking about going through the process to become a mortgage loan originator in Florida but I’m concerned about my credit. Last year during hurricane Irma I had loss of employment and stopped paying my credit cards, about 6 of them. I haven’t paid them since and went into collections on some. My credit dropped from the 700s to the mid 500s. Should I be concerned? I’m extremely motivated to acquire this license seeing that I have a lot of possible connections but wouldn’t want to go through the time money and effort to get denied.
    I look forward to your response. Thanks in advance

    1. Dan

      Florida has gotten tougher with credit. Collections, charged off accounts that is non-medical may need to be either paid and/or entered into a written payment agreement. Another option is file for bankruptcy. Contact me if you have any questions. Using this forum is fine too.

  23. Hey Mr. Cho,

    I’m very serious about pursuing getting my license as a Mortgage Broker in the state of Washington. Due to loss of employment in mid-2018, I missed a few car payments…also I have a maxed out credit card. My credit score is in the mid-500s now. I’m up to speed and back on track with making payments since the last 4 months. But how strict is Washington state nowadays? I just don’t want to dedicate all the time and energy into studying just to be denied due to a past hiccup.

    1. From what you are telling me, you are going to be fine. Regulators do not care about credit scores nor late payments. Best of luck to you.

  24. I want to become a Mortgage Consultant in Pennsylvania and I have very bad credit. This is due to a past bankruptcy and more recently a repo and late payments/ collections due to being laid off. Is this state strict with the credit review process?

    1. Bankruptcy is no problem. Bankruptcies is a federal law to benefit consumers for a fresh financial start. Late payments after bankruptcy and/or foreclosure can be viewed by lenders and/or regulators as a second offense and financial irresponsibility. However, not all states have strict derogatory credit rules. You will have problems in certain states. However, states like California, Indiana, New Jersey, Arizona are not as strict. What state are you planning on getting licensed? Worst case scenario you may need to enter into a written payment agreement with the creditor.

  25. I am trying to get a Mortgage Originator licence in Delaware. My credit is bad due to my credit card debt/collections etc. How strict is Delaware?

    1. Every state has its own bad credit guidelines. NJ, California, Arizona, Indiana is very lenient on collections. I would ask the regulator if you were to set up a written agreement and small monthly payment plan, if that would suffice. Bankruptcy is always an option as well.

  26. Hi, I have just submitted all my stuff thru the NMLS for the state of UT and CA. I’m worried that my licenses will get declined due to my credit, I’ve been behind on my car payment and 1 credit card due to my spouse missing work. How strict is Utah and CA

    1. California is no problem. You can get licensed in California with outstanding collections, judgments, tax liens, charged offs, late payments. I am not too familiar with Utah. Most states do not look at late payments and/or credit scores. As long as you are paying on them, it is fine. They may ask you for a letter of explanation. As long as you are behind and are still making payments, you should be fine and have nothing to worry about. Please let me know on your progress so I can share it with our viewers at Gustan Cho Associates. If you are looking for a remote loan officer opportunity with a direct lender with no overlays, please contact us at The very best to you and your career. Talk to you soon.

      1. I’m hoping it will all be approved, I did put a LOX with my application
        Both CA and Utah submitted fingers crossed

        1. California you are set. Utah should be fine as well. Please keep in touch and let us know how it goes. Talk to you soon and the very best to you.

      2. Hello Sir,
        The information on your blog is very interesting.

        Do you know something about Arizona rules on bad credit criteria / Bankrupcy? Can you please advise?


          1. Thanks for your response?
            Collections, student loan default, repo; therefore, low score credit

            1. Credit scores do not matter. Late payments do not matter. Collections, charged-off accounts, repossession may matter on certain states. State regulators may require you to enter into a written payment plan and/or file bankruptcy.

              1. Ok, thanks a lot for your information.
                This gives me an idea what to do, and make a plan.
                I will continue following up your blog.

                1. Best of luck to you. Feel free to contact us if you have any other questions.

            1. We can help you. We are licensed in South Carolina. Charged-off accounts do not have to be paid with us. Please reach out to us at or call us at 262-716-8151. Text us for a faster response.

  27. Applying for my MLO in California and Nevada, my credit score is low like 610 but i have ZERO late payments or anything negative for the past 8 years, 8 years ago i filed BK Chapter 7. Will this be an issue?

    1. Regulators do not care about credit scores. Bankruptcies does not matter. It is a federal law that gives consumers relief. As long as you have no late payments and no negatives you will not have any issues. The best of luck to you.

    1. Arizona is pretty lenient with getting a MLO NMLS License. Arizona is like California where they are pretty lenient with bad credit.

    1. Yes. My associate George Makoutz is a direct lender with no overlays on government and conventional loans. Please email me your contact information and I will forward it to George. Thank you

  28. Gustan is the man! Answer to my prayers. When I get licensed can I work for you? What does your compensation plan look like ?

  29. Hi There,

    Just want to let you know my Utah MLO licenses got approved I have VERY VERY bad credit and a theft misdemeanor from when I was 18
    Now just waiting on my CA licenses it been 20 days since submitted, how long does CA usually take?

    1. Congratulations. California takes longer than any other states. It can take 2 to 3 months. Thanks for keeping us updated on Utah. Have a great day.

    2. Hi Andrea, how long did it take for them to approve your license in CA? I’m about 20 days in after submitting.

      1. California takes longer than most states in getting approved for NMLS licenses for loan officer

  30. what about NY?? i have a 653 cr score.. i had late payments on my credit card a year ago but am all paid up and have no collections or anything else on my credit report.

  31. I live in South Carolina, I have a judgement against me but credit score is 720. I have passed the test can I get a license?

    1. I would apply for your license. If the regulator has an issue with the judgment, you may need to enter into a written payment agreement with the judgment creditor and/or file bankruptcy.

    1. Judgments are the worst credit you can have. If the regulators say something, you may need to enter into a payment agreement. Or you may need to file bankruptcy;

  32. I am studying to take NMLS test in Texas. I have good credit 700 but had a foreclosure in 2015. I have been trying to find the guidelines for Texas in regard to foreclosure but have found nothing. Do you know about foreclosures?

  33. Gustan, Thanks for the blog posts. I started studying for my Mortgage Loan Officer test, and when I read the credit requirements for my state of Ohio I almost quit. I found your blog post, and after reading it I decided to give it a shot. I passed my exam the first time and got my Ohio license. Thanks again!

    1. Congratulations Travis. The very best to you and your career. You made a great career choice. You can help many families and earn a six figure plus income. Keep me posted on how you do. Thanks for you sharing your experience. Talk to you soon, my friend.

  34. Hi, do you have any experience with NC and SC? Credit score is terrible due to high balances and some late pays that have resulted from hardship. I’ve had 2 deaths in the family and been unemployed 6 mos- want to save myself the embarrassment of pursuing opportunities that require licensing if it’ll be denied.

    1. Credit scores do not matter. Medical collections do not matter. Late payments are fine as long as you are making an attempt or just behind. Outstanding collections and charge off accounts are fine in most states. Some states are more strict than other. Bankruptcies and foreclosures do not matter. NC should be good. I dont know too much about SC

  35. Hello Gustan,

    I am licensed in Florida and NC, and I would say that I have fair to slightly less than fair credit, though not due to foreclosure, late payments, bankruptcy, or judgements, but due to high balances on credit cards that I use to fund a separate business. Would this create issues in the other states that I am currently pending review? Those states are NY, NJ, and TX. Thank you!

    1. Regulators do not care about credit scores. Your high credit balance will not matter. You will have no issues. The very best to you. You should get licensing in all 50 states with lower credit scores due to high balance. Contact us if you have any further questions. Have a great day.

    1. What type of bad credit do you have? All state regulators do not care about credit scores. Michigan is pretty lenient. What type of bad credit do you have?

    1. Good morning. Sorry for the delayed response. I have loan officers in our company who got licensed in Michigan and other states with outstanding collections and charged off accounts. However, states like Florida used to be fine with collections but are now asking for it to either be paid, have a payment plan, or have a bankruptcy. Many states are getting tougher with collections where they were lenient in the past. Midical collections are normally exempt. However, if worse comes to worse, you may have to enter into a payment agreement. I think it should be fine but do not want to mislead you if they changed their policy or you end up with an examiner who is a stickler. Please let us know what the outcome is so I can advise future viewers. The very best luck to you.

  36. Do you have to have good credit for the state of Maryland, I have a few accounts that are in collections but i am in payment agreements with some accounts. I have 6 licenses CA, TN, FL, WA, OH, and PA, but I have been denied by IL, GA, NC, and VA

    1. As long as you have written payment agreements with outstanding collection accounts, you should be fine.

    1. There is no credit score requirements. Your credit scores do not matter when apply for NMLS state licensing

  37. I am considering getting my license in Florida, I have a few accounts which are now in collections including medical bills and money that I owe to my University. Is there still a chance? My score is almost 600.

    1. Credit scores do not matter. Florida is getting tougher with credit. Medical collections are normally exempt. With other collections, you may need to have to enter into a written payment agreement with the creditor and/or file bankruptcy. It will be up to the examiner you get on how anal they want to be. Some are absolute assholes while others will give you a pass with a good letter of explanation.

  38. I recently worked for a licensed mortgage banker in sales as a telemarketer. My job was to generate leads for out licensed loan originators. I worked there for a year before I decided to apply for a loan originator position. My boss said they put you through the classes. I applied, got denied, and have no idea why. I have a credit score of about 560, no felonies (just misdemeanors), Bachelor’s degree in Political Science, proof I was accepted to law school (so if I can do good enough on the LSAT to get into law school, I figure I can pass the NMLS) and I worked for them for a year. What else could I be missing to get a loan officer position? Should I get licensed on my own and apply somewhere else?

    1. You should have no problem getting your NMLS license. Once you get your license, contact me at or text me at 262-716-8151. I can hire you and welcome you to our growing team. Just go ahead and get your 20 hours done and get your license. We offer remote loan officer positions and advancement opportunities. What state are you based in?

  39. Mr. Cho,

    I just read that you have to be sponsored before getting your license. I haven’t worked in a couple of years in any capacity. I was a commercial real estate investment analyst and back then you didn’t need a license. I’m in Georgia, and would like guidance on employment and licensing. Credit is a challenge, but I just finished my course and will try to take the exam in a couple of weeks. I would love to chat about the possibilities of all stated. Best-

    1. Thank you for posting your comment. Georgia is one of the states you would need a sponsor during the licensing process. Most states let you get licensed without a sponsorship by an employer. Credit scores do not matter. However, if you have outstanding collections and/or charged off accounts, you may need to enter into a written payment agreement with the creditor. The very best to you.

  40. Hi! I’m interested in getting my MLO…I am in Fl. I’ve been cleaning up my credit. I have only two derogatory items on there…1 car repo 4 years ago and 1 medical collection, $10 k student loans in good standing, all other lines of credit are on time. My credit has gone up…now 610. Would I gave a fair shot at getting my license.

    1. Medical collections should not matter. The repossession may need to be paid either with a negotiated full payment and/or written payment agreement. You may get a pass on it with a good letter of explanation. It depends on the examiner you end up with. However, worse case scenario you may either have to get a written payment agreement or file bankruptcy and get it wiped off.

  41. I just passed my NMLS exam and will by applying for state licensing.

    I went through a divorce 4 years ago that left me with 3 repossessions, one paid in full and two that are charged off.

    What are my chances in the following states:

    Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee and Texas?


    1. Credit scores do not matter. However, more and more states are becoming stricter with outstanding collections and/or charged off account. Texas and Georgia will require you either to pay off the charge off accounts and/or enter into a repayment agreement or file bankruptcy. The other states depends on the examiner and can deny you the license unless you either have a written payment agreement and/or file bankruptcy. You should be fine with Alabama. Depending on the charged off accounts, I would consider making a written payment agreement and/or if they are large, filing for bankruptcy.

    1. Thank you for your comments. Wish you the very best. Please do not hesitate to reach out to us if you have any questions. Please update us on your career. Again, the very best.

  42. Any idea how NY handles it?? My credit is below 600 had some issues with my mortgage and some medical collections

    1. Medical collections are normally exempt for most states. Late payments and credit scores do not matter as long as you are caught up.

  43. hey Gustan i am renewing in GA and FL

    i have had one 30 day late on a small CC in the past 12 months all are current now but the balances are near maxed. I also had a $500 collection from ATT cable bill come up. i think im ok but please confirm these wont be issues?

  44. Does Florida, Georgia or NC considerVerizon collection or cable bill collections a item that they will make you pay off?

  45. Question about bankruptcy: I know you said in an earlier post that bankruptcy should not be an issue. Has that changed since last year? Also do I need to write an explanation letter if I do file for bankruptcy? I’m considering it but don’t want to do it if it will prevent me from renewing or getting additional states.

    Also, if one state denies me a license, does that affect my existing licenses? I have 4 licenses right now. Let’s say I apply in Texas and deny me, will that affect my current licenses or prevent me from renewing the following year?

    Not a lot of information about this online. Regulators seem to be very vague on their websites.

    1. Bankruptcy is fine. You do need a letter of explanation but bankruptcy is a good thing. It is a federal law that helps consumers have a fresh start. The only two states you will have an issue is Connecticut and Oregon. Connecticut requires a one year wait period and Oregon a 5 year waiting period.

  46. I am currently training to become a loan officer and get my NMLS License. I filed a chapter 7 bankruptcy two years ago for a small amount and have since repaired my credit and have several lines of credit in good standing.

    Is this going to affect my ability to get my NMLS License in MASSACHUSETTS?

    1. You are all set. Bankruptcies are good for those who are in debt. It is a federal law that enables consumers to get a fresh financial start. You will not have any issues with any states in getting your NMLS license. The very best to you and your new career.

  47. Hello,

    I am in the process of accepting an offer of employment for a larger bank. The requirements for the position are NMLS licensing and Insurance 2-20. I filed chapter 7 in 2016 at the age of 21, due to some personal issues. I currently have a credit in the high 600’s low 700’s and have no collections. I started building credit the day of my discharge, was ironically approved for a credit card the same day. I recently bought a home, and have high credit limits with low usage. I do however have many inquiries from trying to establish credit. Should I be concerned with my licensing?

    I live in Florida.

  48. Hello , I was wondering if I should disclose my misdemeanor petty theft charge from 11 years ago that were expunged . I live in Florida and I’m applying for 24 states . In FL, it states you can say no to any charges but I’m still not sure if anyone else has had any issues . Any recommendations?

    1. If the record is expunged then there is no reason to list it. Why create and open up a can of worms.

  49. hello, i’m in the process applying a national MLO-DRE license through California. I have 2 late payment and collection history last year and a credit card balance 9k now. But my credit score still shows 730. Do you think this will affect my credit check background to pass?

    1. You have nothing to worry about. Regulators do not care about credit scores or payment history nor credit card balances. Also, California is one of the most lenient states when it comes to credit.

  50. How hard is it in the state of Kentucky to get nmls for a bank position. Currently have a few credit cards that aren’t in great standing? Will this enable me from Getting the job ?

    1. You do not need an NMLS license if your are working for a bank. You just need to be registered. NMLS has nothing to do with dealing with registered loan officers. You would need to contact the bank directly. They set their own standards.

  51. Hi Gustan!
    I am in Florida with 3 charge-offs and 3 collections reporting that are about 6 years old.
    Any suggestions on what states to apply?
    I was reading California DBO criteria, and they talk about credit being a factor of denial, so I am a bit concerned with applying there.
    Thank you for your help!

    1. Florida has gotten much tougher when it comes to collections and/or charged off accounts. Credit scores and late payments do not matter. However, you may need to pay those charged off accounts or enter into a written payment agreement. Or you may want to consider bankruptcy.

        1. You will not have any issues with California. California is the most lenient state when it comes to collections, charged-off accounts, judgments, tax liens, and bad credit. Texas and Georgia are the two toughest states when it comes to bad credit.

  52. Once I am licensed, I will reach out to you about joining your team. I am looking for a remote position.

    Happy holidays and thank you for the help!

    1. Sounds like a plan. Go over as many multiple choice questions as you can. That is the key. Contact David Reinholtz at Loan Officer School. He has the best and easiest training program and the best study questions. His contact is

  53. Im looking to get my license in CT. I currently have 53k in various debts in 4 years. This was due to loss of job on my husband, medical debt post part which paused other debt payments for myself and son. I have items in collections I pay on time but the bare minimum. Im a SAHM and want to go back to work after 5 years and I am seeking you advice before I proceed

    1. Credit scores does not matter for regulators. Connecticut is one of the tougher states when it comes to getting the state NMLS license. As long as you are on a written payment agreement with you creditors and are making payments on your outstanding collections, you should be fine. Or file for bankruptcy. Either option works.

  54. This was great information. I’m about to start the process for my license. I’m in desperate need of a career change and I think this may be it. Hopefully it will be easy to get a job afterwards.

  55. Hi
    I have a realtors licence in NC and currently looking to get Loan Officer License in NC as well. Have 2 judgments that are now paid credit score is 690. Will I encounter any issues for NC? Do you know that requirements for approval?

    1. As long as your judgments are settled, it is fine. You will not have any issues with getting your North Carolina NMLS license.

  56. I am looking into to becoming MLO and I am in NC. I do have some late payments on my credit will this stop me from getting my license when I am done and have passed the test in NC? Also, after the class in order to get a job will the late payments be an issue? Just need to make sure before I start all of this. Thank you in advance.

    1. Late payments are no problem. Credit scores do not matter. You will not have any problems. The very best to you.

    1. Our Virginia license is pending. However, I can refer you to my Associate George Makoutz who is licensed in Virginia and work closely with on states we are not licensed in. You can call and/or text me at 262-716-8151 or email me at I am always available.

  57. My wife and I went through some tough financial times back in late 2018/early 2019. 30 days late on Amex one time, then a worst payment status of 120 days on a Cap One Card. It sucked at that time. But since then, we have managed to pull ourselves out with the assistance of Piotr Bieda and Alex Carlucci service (on May 2019). I got many review on Youtube and every Credit report site and we decided to give him a try. I contact him via his email told him every problem we have on our credit and asked if he could helped us out, he replied and assure us he would. He delivered what he promised after few days we contact him. Since then we’ve been able to qualify for a mortgage, every negative items or collection on the reports were cleared and finally our Credit score was in its 800s, I do feel like Tom service is incredible, but I’m glad I made the best decision of my life and the outcome was epic. Thanks Piotr Bieda, Alex Carlucci, and Massimo Ressa of Gustan Cho Associates

  58. Hello Mr. Cho,
    Before the crash of 2008, I completed tons loan transactions, after the crash, I switched over to Real Estate, but I still found myself helping clients gather information for lenders, which I am still doing today. I have decided to pursue my MLO License. My credit is not the best, will I have any issues getting a license with bad credit in California?

    1. You are not going to have any problems in California in getting your DBO license. I highly recommend David Reinholtz at He has the best NMLS study questions and has a great 20 hour NMLS online program. Go to his website and ask for David Reinholtz. Tell him I referred you to him and he will give you a discount. The best of luck and keep us posted.

  59. Gustan,
    I did mortgages from 2000 to 2009 before the bust. I live in Indiana. I had a judgment put on for 65k. I have since refiled my taxes to fix the bad 1099’s that were sent in by Mtg co’s that went out of business. I now only have an outstanding balance of approx 8k. I am not required to do a payment plan because my income is not high enough. What do you thin my chances are of getting a licence in Florida & Indiana. I plan on moving to Fl next yr.

    1. You are not going to have a problem in Indiana. You may have an issue in Florida. Florida may require a written payment agreement. If you are not making a payment due to not enough income, you need to provide that to the regulator and that may be good enough for Florida.

  60. Hi Gustan,

    First I wanted to thank you for all your guidance and insights. My situation is that I have 4 derogatory credit cards, 1 has payment arrangement now but the others went to collections, Its all tuition I had to stop paying after my parents lost their jobs and I had to take over the bills and mortgage, and I was not eligible for student loans. My credit score used to be a 763 but they probably don’t care about that. My exam is in mid June, I am in Texas, I will probably be denied in Texas(they seem really rude and unforgiving) . If I pass the the exam in Texas but denied a license here, I can go ahead and apply to other states who are more lenient until I find a state that approves me then I can look for an employer and start working correct?

    Thank You,

    1. That is correct. California, Indiana, Illinois, Colorado, Tennessee, Alabama are some of the states that are less strict than Texas. With Texas, you need payment agreements on collections and charged off accounts or file bankruptcy.

  61. Hello, 
    I read your article titled ‘Can You Become A Loan Officer With Bad Credit’, and I wanted to reach out and see if you know whether or not I will be approved for a license in the state of Oregon in which I live. My credit is bad, and I’m worried about spending more money without knowing if I’ll be approved or not. Any information you have helps. Thank you.
    Raymond Van Orsow

    1. You need to clarify what you mean by your credit is bad? Credit scores do not matter. What do you have on your credit report that is so bad? If you have a bunch of outstanding collections, charged off accounts, judgments, maybe you should file bankruptcy. Bankruptcy is fine for you getting your NMLS license.

      1. I have two charged off credit cards that I am financially unable to pay off at the moment. I know how to be responsible with credit card payments but for the last year or so my income has not allowed me to stay caught up the way I need to be. I’ve managed to successfully keep up with my car payment, however. As soon as I am able I plan to pay them off. Is it possible that I can be approved in the state of Oregon for an MLO license with two charged off cards, or will I more than likely be declined? Can I apply more than once if I am able to pay off my credit cards and get to a point where I can reapply for a license?
        Thank you –

        1. I do not know how strict Oregon is but in California is no problem. Worst-case scenario, you may need to file bankruptcy and/or have a written repayment plan.

            1. You can reapply as many times as you like. Regulators will tell you ahead of time if they are going to deny you so you can withdraw your license application prior to getting a denial by the regulator.

                1. Unfortunately, I do not know too much about Oregon. Certain states like Texas and Georgia are very tough on collections and charged-off accounts. Other states like California, Indiana, Illinois, New Jersey, Ohio don’t care. Worst case scenario, the regulator will alert you and if they have a beef, then just enter into a written payment agreement for $20 bucks a month with the creditors and you will be fine. Best of luck to you.

  62. Good morning! I hope you are having a good one. I came across your article in regards to your journey into the mortgage industry. I’ve contemplated entering it for some time. Mentally I’m ready but I’m full of questions and have attempted to reach out to our licensing department however since they work from home now my luck in getting a returned phone call just hasn’t happened or email replied to. I’m hoping you can help me. I live in Tennessee and I’m wondering does state law require for me to have my mortgage license if I only plan on being an intermediary but own a mortgage company? Thanks so much for your time.☺

  63. Hello,
    I was on your website and I have a couple of questions. Do you have construction loans for vacation homes?
    We own a piece of land in New Hampshire and are thinking about building a Morton Home. I don’t have set figures but we are hoping to build it for max 150K a 2 bedroom around 1000 sq ft very basic. We’d like to put 20% down so we don’t get hit with PMI, does the land count toward our 20%? Also what would the Debt to income ratio be?

    Thank you for your time.

  64. Jammi Cash of Gustan Cho Associates went above and beyond in getting me approved on a mortgage in Mobile, Alabama. Jammi Cash and her associate Michelle McCue and Fiona McCue went above and beyond not just getting me qualified by getting me approved with a 581 credit score on an FHA loan. Gustan Cho Associates it’s a government approved firm, they give out mortgage loans to both individuals and companies with an interest rate of 2%. Are you looking for a mortgage loan or a company loan? Any amount you need is available at at Capital Lending Network, Inc, contact them through email: ( ) I have benefited from them and you can benefit also.

  65. Hi Gustan. I’ve recently passed my mlo exam in California and would like to apply for a position. I have one worry though, and that would be my upcoming schedule in 2021. I will be investing in a brick and mortar business in Texas and will be staying there for a few months, however I will not be moving permanently and still be a California resident. Would it be possible to work remotely and originate CA loans even when I am in Texas from time to time?

    Thank you,

    Great marketing blog by the way.

    1. Yes of course. You can work remotely and be licensed in multiple states. Start applying for states now and once you get approved, contact me and let’s talk about onboarding you. What kind of experience do you have? Do you have any loan origination experience in the past?

  66. Hello!
    I am in Wisconsin, have worked in banking for about a year and am thinking of tying for my MLO (not sure where to even start with that, but that’s another subject!)
    I had a Chapter 7 in 2017, since then I only have a car loan and 1 credit card, all in good standing. I read WI is pretty strict, should I go for it anyway?
    Thank you for your time!

    1. You are fine and will not have any trouble getting licensed in Wisconsin. Wisconsin is strict with collections accounts, charged off, and judgments. Bankruptcy is fine. You will not have any issues with any states with a Chapter 7 Bankruptcy.

  67. Hello Gustan and thank you for this thread. I had an amazing career in the mortgage business which came to a halt in 09 and I ended up having a foreclosure in 12/2011. I want to reenter the business, have passed my test, but am worried about the previous foreclosure to be licensed in CA. By the way, I am financially responsible with a 790 credit score after having rebuilt my career in software sales, but anxious to get back to real estate lending. Will I have a problem, and if so, what states would approve me? I appreciate your response.

    1. You should be fine. As long as you have a prior foreclosure and do not have a deficit judgment, you should be good in all states. California has one of the most lenient credit requirements. You will not have any issues in getting licensed in California. You have absolutely nothing to worry about.

  68. Do you know what WA State is currently like? I have two paid off in full collections and one that is in dispute (balance is around $900.00 should be like $300.00). There are a few old (5 year plus) charge offs and a few small recent ones 100% due to COVID 19 Pandemic as i was unemployed for 7 months due to being let go due to the pandemic and my unemployment was peanuts compared to what i was making, so i had to let a few things go. No judgments and no bankruptcies. all my open and revolving accounts are current (three credit cards, an auto loan and a few installment loans). i am worried i will be denied if i apply in WA State…

  69. I have been working for a mortgage company for 3 years now, and I want to get licensed in Texas. But I am worried that my credit might stop me. I have a charged off credit card account from 6 years, and 3 months ago. I opened a card in college, and wasn’t able to keep up with the payments while attending school. Other than that, the only credit I really have is an auto loan that has been paid on time every month. I also have a couple of small personal loans, which are also paid in full, and on time. Do you think the closed credit card account will affect my chances at getting approved for a license? I am worried that if I enter a payment agreement, the statute of limitations will start over and it will remain on my credit report for longer when it is due to fall off by next year. Do you think I should just wait it out? Risk it? Or try paying it off now?

    1. Texas is one of the toughest states when it comes to derogatory credit. You are not going to have any issues in California, Arizona, or Nevada but will in Texas. You either need to pay it off, enter into a written payment agreement, or file bankruptcy.

  70. I am thinking of changing careers and I am in New Hampshire. My credit recently (within the last 3 years) tanked from the mid 700s to low 500s due to pandemic issues, health issues, and work issues. I am in a tight spot financially and I am concerned on the costs to attain my license only to be denied in New Hampshire. Is New Hampshire a state that is strict with regards to credit ratings?

    1. Credit scores do not matter. As long as you are making payments or are in a payment arrangement, you should be fine.

  71. It is estimated to be removed from my report 7/2022. I am worried if I pay it, or enter an agreement, it will remain on my report for longer and keep effecting my ability to apply for credit.

  72. I am very interested in becoming a MLO but my credit isn’t the best. Do you know anything about how Missouri looks at credit?

  73. I live in Texas and I’m set to retire from my current job in 9 months. My intentions are to make a career change in the mortgage industry. I don’t believe I will have any problems with my credit. I have one charge off account that has been paid in full and it shows on my credit report as paid. My question is how do I get started in the industry? I’m doing research and I finding everyone is asking for previous mortgage experience. I have experience in consumer lending but that was over 20 years ago. I have even considered taking a loan processor job to get my foot in the door to some companies. I want to work on taking the exam in 6 months so I can be ready to take the exam by the time I retire and move into a new career.

    1. I recommend you contact David Reinholtz at He will guide you in the right path in getting your NMLS license. Getting your license should take you no more than two months maximum. Please contact me after you passed your exam and get your license and we will see if we can enroll you in our mortgage training program.

  74. Hi There! I am studying for my NMLS licensing test. I have 2 bankruptcies on my record. A chapter 7 that was discharged over 10 years ago and a chapter 13 that was discharged in 2017. I have a 99% payment history and a credit score of 725 with no other derogatory marks or collections. I do also have a very high amount of student loan debt.

    Will I have a hard time getting my license in Colorado?

    1. Bankruptcy is actually good if you have no late payments after bankruptcy. You will not have any issues qualifying for an NMLS license anywhere in the 50 states. Good luck to you.

  75. Hi. Thanks for all of your interesting and educational articles!
    Do you know anything about Colorado? My credit is not bad, no derogatory or lates or collections. Etc. just a few high credit card balances. I’m a licensed real estate broker and they did not do a credit report.

    1. Credit scores do not matter. You will not have any issues getting licensed anywhere. Please reach out to us and do not hesitate to post any other questions you have. Or you can email us or 262-716-8151 if you have any other questions.

  76. Hi, I was wondering if you have tons of collections not paid , which states will I be able to get approved for? The lender right now i am looking at applying with is licensed in WA, CA, NJ, TX, FL ,OR, NV. Will I be able to get licensed in any of these states? and if so what is the process? Thanks for the help

    1. It is going to be up to the individual examiner. Uncollected debts and charged off accounts are becoming more scrutinize. FL, TX, NV may be an issue for you to get approved unless you have a written agreement.

  77. Thanks for your response. Do you know if California and NJ will have an issue? Or is it a must that i have a payment arrangement setup with those collection accounts. Again thanks for the help

    1. California used to be a breeze but I have heard examiners denying licensing due to derogatory credit starting last year. You may want to consider filing bankruptcy if you have a lot of collections and/or charged-off accounts. New Jersey has denied licenses for a loan officer applicant due to a charged off account seven years ago. I am seeing more and more states getting strict with prior bad credit.

  78. So the best bet is either to file bankruptcy or what if i settled everything on my credit report? Will settling all accounts work to obtain a license? or if setup payment plans with all my collection accounts will that work as well? Unfortunately i cant file Bk due to me being married and my wife wants no part of a BK.

    1. Bankruptcy is your best bet. Your wife won’t have to be in bankruptcy. You can file it individually. You will not have any problems with bankruptcy. I have helped many folks get credit scores to over 700 FICO in less than one year after bankruptcy. The second option is to get written payment agreements on all of your collections and charged off accounts. Judgments need to be settled and/or written payment agreement.

  79. Yeah the problem with California is that she has a property under her name and I believe its common law state. So if i settled all my collection accounts for pennies on the dollar i should be in the clear? I have the money to settle all my accounts , but i dont want to go through with that process and have to pay for the exam if im going to get denied. Some of these items will fall off in a year or so.

    1. California is hands down the most lenient state. You should be fine in California. Any state will be fine as long as you have a written payment agreement. In California, you can still get approved without paying off the collections and/or charged-off account unless you get a nasty examiner.

  80. I’m applying for licensing in North Carolina. But have a bankruptcy 4 years ago. Passed the 24 hour pre licensing course as well as the NMLS Safe test.Credit score in the low 700s. What are my chances?

    1. Congratulations. Bankruptcy is good. You will not have any issues with getting your NMLS license anywhere.

  81. Hi, Thank you for this article. I am taking the NMLS test this month in Nevada. I am feeling great about the test, but I just learned about the credit check and that makes me nervous. In 2017 I signed for a car for my boyfriend. He stopped making payments and they repossessed the car. My credit score is 635-657. I have student loans but those are “frozen” right now due to Covid. Do you have any knowledge of how Nevada reviews creditworthiness?

    1. The worst thing that may happen is for the regulator to have you enter into a written payment agreement. Or file bankruptcy. The examiner will let you know your options before taking action.

  82. Hi Gustan,

    I really hope you can help me. I have about 50k in student loans, after I graduated I struggled to make much money at all and have been skating by on my ass barely able to pay rent and other bills. I live in Seattle Washington and have yet to make a payment on my student loans from the University of Washington. Besides my student loans, I should dont have anything else on my transunion credit report. I would like to get my MLO license, will I be able to do so?

    1. As long as your student loans are not in arrears and you are on deferment and/or payment plan, you should be fine.

  83. Hi Gustan,

    I am in Missouri and looking to start a career as an MLO. My recent credit report is about 655 and I have 6 charge offs showing. One of them is from a credit card that we negotiated a lower amount and I am making payments on. Would it be worthwhile to go through the process of becoming an MLO or are my chances of getting licensed in Missouri so low that I should reconsider? Thanks for your insight.

    1. Collections and charged-off accounts may need to be entered into a written payment agreement with the creditor. Or if they are of high balance, you should consider filing for bankruptcy. Bankruptcy is good because it will clear all of your debts. Certain states like Texas and Georgia and most east coast states will require that you either pay off the outstanding debts or file bankruptcy.

  84. Hi Gustan,

    I am in Washington State and I recently passed my exam and wanted to move forward with obtaining my license. I applied for a position in which they advised that I had two negative items that needed to be taken care of in order to proceed however this position was for out in Denver, CO. One of which is a charge-off. I have since set up a payment arrangement for the one collection and I am waiting to hear back regarding the charge-off. Would it be ok for me to go ahead and submit for my license or should I wait and provide documentation for both negative items mentioned.


    1. Go ahead and start the application process. Some states are more strict on collections and charged off accounts than others. As long as you have set up a written payment agreement with creditors, you are not going to have any issues with any states. California is one of the most lenient states in getting licensed with bad credit.

  85. Thank you so much for this blog and your honesty. Do you happen to know how challenging it would be to get an Originator’s license in Michigan?

    1. What is your question specifically? Credit scores do not matter in any states. Certain states like Texas and Georgia are really strick with derogatory credit items. All states are cracking down with outstanding collections and charged off accounts. Worst case scenario, you may need to enter into a written payment plan with the creditor depending on the NMLS examiner. They are not going to deny your license without first givng you the opportunity to withdraw your application. If you have a lot of collections, charged off accounts, judgments, you may want to consider filing for bankruptcy. Bankruptcy gives you a fresh start and chance to rebuild your credit.

  86. Gustan,

    I have a payment plan with a creditor and 5 charge offs with zero balance from about 6 years ago. Would that disqualify me from getting a license in Missouri?

    1. You will be fine. Credit scores do not matter. As long as you have a written payment agreement with the creditor, you are financially responsible and of good character.

  87. Good Afternoon Gustan, I plan on getting licensed for Illinois and Texas. The only issue I have is that I have a collection/charge-off that has been already paid off, but it still shows on my credit report. Will I have any issue with getting my license in Illinois or Texa?

    1. As long as the charged-off account is paid off you will get licensed in both states. Texas is a stickler with outstanding collections and charged-off account but as long as it has been paid off, you are fine. The best of luck to you.

  88. Really like your blog. I am applying for MLO license in VA. I have one derogatory mark and a few credit charge-offs. Do you think I can still get approved in VA? Should I send letter of explanation and financial statement? What is a good way to approach the letter?

  89. I would wait until what the examiner says. The examiner may want a letter of explanation or may require you set up written payment agreements with the creditors. I would not volunteer any information and only provide what is asked and not more.

  90. I’ll try to be short and to the point. I currently live in Florida. Credit is hovering around 600. +/_ 20 points depending upon the month. 3-4 derogatory remarks. (i’m happy to take care of) My biggest concern is i have Federal Tax Liens against me for 2008, 2009, 2010 & 2011. I fought it with a lawyer and think the process was finished 2013. I work minimum wage jobs and have no hope to ever pay them off. My best bet is to wait out the 10 year statue of limitations. (2023?) How would this affect me in obtaining my NMLS? I am seeking a career change to Mortgage Underwriting. Also, i would like to move to Wisconsin (asap) where my family resides.
    Thank you

    1. You are not going to get your NMLS license with a federal tax lien unless you have a written payment agreement and are making minimum monthly payments.

  91. Dear Gustan,

    Thank you so much for writing the article “Can You Become A Loan Officer With Bad Credit And Get Licensed”.
    My questions was specifically for the state of Arizona and if you had any insight into whether their guide lines are strict. I am 34 years old, and my parents never taught me financial education, therefore up until about 3 years ago I did not make the best financial decisions. It took me discovering Audible, and a lot of financial books later to learn what its like to be financially responsible.
    My score I would say is about 540, and has been that way for most of my life, due to my younger self poor decisions. I do not have any foreclosures, or car repo’s or anything too crazy. I mostly have two credit cards that were around 3k each go to collections and charged off on my report because I could not afford the payments. I worked as a vet tech making less than 16 an hour up until about a year ago, when I was able to finally secure a 20$ position still on a W2, so not much income still.
    Since february, I switched and started working as an assistant to a business broker as a 1099 employee. That has somewhat of a promising future, however everything is based on how many deals we close a month, which isnt a very secure position for me. I just took an Arizona Real Estate Course of 90 hours and passed the school exam. I would need it to pursue becoming a business broker. However I was looking at my options and I would be much happier and more secure with a Mortgage Loan Officer position.
    Based on my credit score, that scares me and Im wondering how strict Arizona guidelines are.

    I apologize this message is so long. I thank you ahead of time for being so kind and helping so many people reach their potential.

    Hope you have a wonderful evening, and I look forward to your response.
    Best Regards,
    Courtney Harris

  92. To be honest, no state or regulatory agency should give anyone a license to financially advise consumers which mortgage loan to get when the LO has a credit scores below 620. There is no excuse, reason or waiver because you owned $6 million of real estate or more. This is absurd.

    I applaud Wisconsin for maintaining a standard. Florida is always at the top for scheming criminals and always #1 for ID theft. They maintain a policy and a bad pattern of allowing sub-par applicants to get a license or job they should not have.

    People with chronically bad credit are not usually one-time offenders. It is a pattern of making irresponsible choices. I also lost real estate in a short sale during the crisis but I didn’t let my other consumer debt go to hell. So,my credit score remained high

    It’s like having a fat person being your personal fitness trainer or an illiterate HS dropout teaching foreigners English. Seriously look at it from that perspective. Opportunities should be given when you meet that standard, a respectable credit score> 620, being in avg. to decent shape, HS grad or GED etc. not before.

    Thank god there’s 1st tier companies that want LO’s to have a BA degree and minimum credit scores.
    This is terrible , irresponsible, and very concerning reasons why the industry has high turnover and jokes about LO’s..

  93. Having said that. I think you do have a lot of knowledge about many loan products but the NMLS and states need to have a hard line credit score “minimum” for all applicants to become licensed. Like a GPA to get into college, it must be followed. Or at the very least upon license renewal you need to have a 620+score.

    Please do not encourage bad credit LO’s into the industry. You are promoting a disservice to consumers to have someone unqualified to advise borrowers about their credit. There are millions of people with bad credit and they remain that way most of their life due to poor decisions.

    1. I have been in the mortgage industry for YEARS and most of the crooks i.e. Owners, Senior Management, and Loan Officers with boatloads of money, good credit, sold LOUSY MORTGAGE PRODUCTS ON A DAILY TO MAKE MORE MONEY. This includes the banks, the private mortgage lenders etc. Regulate the lenders – NOT THE LOAN OFFICERS!!!

      The loans that were being sold by entry loan level, officers, maybe out of college or new to the industry were by loan officers whom had no credit, very little credit or POOR CREDIT. The bottom line is THAT you are selling FINANCIAL PRODUCTS in which the lender HAS GUIDELINES!!!!!! If you are following the product guidelines, then ALL NEEDED IS A GOOD LOAN OFFICER WHO KNOWS HOW TO EXPLAIN AND DELIVER THOSE PRODUCTS TO THE CUSTOMER. That comes with GOOD LOAN OFFICER TRAINING NOT AN 800 CREDIT SCORE. Regulate the banks – THEY WERE ALLOWED TO USE THEIR BANK LINES OF CREDIT TO MARKET AND SELL BAD LOANS – THE BANKS – NOT THE LOAN OFFICERS!!!

      It amazes me now that the wealthy bankers ruined the mortgage industry we now have a “concerned banking industry” that does it best to exclude the up and coming loan officers from this profession.
      NMLS CAN’T DETERMINE WHETHER A loan officer will be good or bad. Statistics show that the most successful lawyers in the Country are “C Level” students.

      To my loan Officers who may be in a sticky situation financially, life, pandemics, foreclosures – find a state where you can get licensed and there are many ways you can still work in the mortgage industry with 1 state license and possibly be a referral loan officer for the other states and STILL MAKE A GOOD INCOME!!

  94. Do you have to finish the chapter 13 and get the discharge before starting the career as a MLO? Or can I start pre-discharge?

    1. You do not have to wait until your Chapter 13 bankruptcy discharged date. You can get your license in any state during the Chapter 13 bankruptcy repayment period.

  95. I live in Califorina, and just shy of my 61st B-Day. Recently lost my entire business due to the Covid Pandemic. Nothing Left ! Currently in a BK but not yet filed. There were some business as well as some personal debts on the BK. I really want to become a licenced MLO. Would I be looking at any problems getting licenced ?

    1. Bankruptcy is good. You will have no problem in getting licensed in any state after bankruptcy.

    1. We are licensed in Ohio but not yet in Arizona. We are only hiring experienced loan officers at this time. Two years of full time experience only.

  96. I’m interested in getting licensed in California, but I have student loans. Will this be an issue for me?

    1. You cannot have delinquent federal debt in most states. However, California is very lenient and I have seen people with tax liens and judgments get approved in California.

  97. Your ads reach far, sir! Upon reading your company’s mission statement, a great fit. I believe timing is everything. I’ve completed courses for CA, TX, TX, MI & FL. Completing WA, HI & OR next (NV is on hold unfortunately at this time). More soon. Thanks much, Have a fantastic week!

  98. Is it really worth to become a MLO? like what kind of income potential can i see if i was to obtain my License in the first year? and do i have to work under someone to have success? Thank you

  99. I am in the New England area, most of my issues came 5-6 years ago when I went through a divorce. Are you familiar with how strict Ma, NH, CT, RI, Maine and Florida are? I’ve already passed the National test and have finished all the state content.

  100. I’m looking to get my license in the state of Kansas and Missouri. I have a credit score of 570 from Experian with one Judgement at $6000 and currently late on 2 cards for, 3 months behind and that’s it. Do you think I’ll get approve?

    1. You may have to enter into a written payment agreement with your judgment. Late payments and credit scores do not matter. Or you can file bankruptcy and wipe those debts off and you will not have any problems in any state.

  101. I’m 20, I live in Texas I Currently have 3 things in collections that total less then 1k and my credit is right under a 600, if I pay them off before I start the course in July do you think I will be ok? Any help is greatly appreciated thank you!

    1. As long as you pay them and/or enter into a written payment agreement, you will be fine in getting your NMLS license in Texas.

  102. Ok great, I’m really thankful that you responded even though I asked the same basic question you’ve answered a million times. I was just a little panicked after reading a lot of the previous comments about the Texas NMLS. But you’ve made me much more confident about the situation. Thanks again!

    1. The best of luck to you. Please don’t hesitate to ask any other questions you may have.

  103. Hello Gustan,

    I want to apply for a FL MLO license. I saw that you mentioned that FL is getting tougher with credit. My credit score is 600. I don’t have any late payments or charge offs, but I have a lot of credit card debt. I pay for interest only every month until I can actually start making bigger payments. I usually pay the minimum for my cards on time every month (sometimes I’m one or two days late). Do you think I’m going to have my license approved? Thanks!

  104. I am preparing to be licensed in Texas. If there are multiple credit collections with late payments, charge offs, and third party debt agencies, does every listed account need to be resolved by pmt plan or pd before being approved? I am also concerned about the turn around time as well for credit, licensing, then closing your first loan. Would these steps take 6months?

    1. Jessica, in Texas, you need to have settled all of your outstanding collections, charged-off accounts, and have all the late payments current or they will not grant you an NMLS license. You should consider filing Chapter 7 bankruptcy. The bankruptcy will resolve any credit issues of the past and give you a fresh start. You will have no problems in getting licensed after bankruptcy. It normally takes 30 days from application to closing and you getting paid.

  105. Hi I wanted to ask is there a specific credit bureau that the state of Texas Uses to for Credit Validation?

    1. All credit bureaus used are contracted by lenders and the states have nothing to do with it.

  106. Do you know how strict Kentucky and Indiana are on credit report? Does being employed by certain lenders help with the credit and background checks?

  107. I used to be able to find good advice from your articles. My husband and I are looking to get a mortgage but our credit is poor and we are thinking on signup for bankruptcy But want to know if we would still qualify for the mortgage?

  108. I am wanting to be a MLO in Oklahoma. How strict is it? I do have judgement with a monthly plan, charged off and my credit score is pretty bad. But this is all from 2016.

    1. As long as you have a written payment plan on judgments, collections, and charged-off accounts, you will be fine. You should consider filing bankruptcy and that way you will have no problems in any states getting your NMLS license.

  109. I live in Texas and want to apply with a large bank as a mortgage underwriter, but I have to go through SAFE background and credit check. I’m concerned about passing the credit check. I’ve had 3 dismissed bankruptcies last one was over 15 months ago. I have collection accounts, tax lien and late on 2 current loans. My mortgage auto loans and a couple credit cards have been paid on time for more than 12 months. My credit overall is very bad. Do you think it will be a problem?

    1. Tax liens and outstanding delinquent debts need to be on a written payment agreement and current. Up to date. Or need to file bankruptcy. No late payments during and/or after bankruptcy.

  110. You’ve suggested which states are difficult to pass the credit checks and which are not. How difficult is it to pass the credit checks in IN, KY, and TN?

    1. All states have rigorously tightened up on credit checks. Credit scores do not matter. If you had missed a bunch of payments and finally caught up or are making efforts to catch up, you will be fine. If you have outstanding collections and charged-off accounts, most states will now request that you enter into a written payment agreement with the creditors. For example, New Jersey used to be one of the most liberal states in where you can get your NMLS license with outstanding collections and/or charged-off accounts. Now, New Jersey asks that you enter into a written payment agreement with the creditors. In the past, many states let older collections and charged off accounts slide. However, I know most states have tightened up with credit checks. Or if you have a larger outstanding collection balance, you may want to explore bankruptcy. Bankruptcy will not deter you in getting licensed in any of the 50 states. The best of luck to you.

  111. Hello Gus/Finn,

    I feel we are ready to move forward with the home loan. Can we get the paperwork started? Thank you for your time and patience.


    Daniel Serafini

  112. I was offered a position as an underwriter and now going through background and credit check. I’ve been asked to provide a written explanation on prior bk filings and collection accounts. Aside from poor money management I do not have a good explanation. I’ve gotten my credit back on track but unsure how to respond. What are your thoughts?

    1. You are not going to have any issues if you filed for bankruptcy. However, if you have late payments after bankruptcy, there can be an issue. Most employers will classify late payers after bankruptcy as financially irresponsible. However, as long as you have timely payments and reestablished credit after bankruptcy, you have nothing to worry about.

  113. Amazing! It’s a genuinely awesome paragraph, I have got much clear idea of the topic from this article. Purchase a home I would like to know the rules to purchasing following a year of chapter 13 bankruptcy with on time payments. I have the down payment

  114. Can you share if a recent charge off on credit report and a 615 credit score in CO could potentially deny the MLO license? I do have other debts on credit report but I am on time with all of them.

    1. Every state regulator is getting more tough on outstanding collections and/or charged-off accounts during the credit background process. States like New Jersey, Virginia, North Carolina, and dozens of others used to ignore older charged-off and collection accounts. However, they now require you pay off outstanding derogatory credit tradelines or enter into a written payment plan.

  115. Hello, Gustan Cho Associates Team
    My name is Shannon Waiters and I am a military retiree who has used my VA loan entitlement several times. I am currently in the process of selling my rental property (VA Loan) located in GA in order to help finance my forever home here in FL. I am very concerned about my buying power now that I am retired. I am 100% P&T disabled and receive compensation, but, I had to sign a retirement pay waiver due to being medically retired at 19 years. So although I receive a letter from DFAS every month reminding me I am entitled to retired pay of $2200+, I do not actually receive it. I do, however, receive a housing allowance because I am in Law School. But I was told that allowance is considered temporary income and cannot be counted for mortgage qualification purposes. Is that true? Is there someone available that can help walk me through the process of maximizing my buying power in a FL seller’s market? My income has dropped significantly since retirement, but I was hoping that there would be other benefits of this status that would help my situation. I feel lost and overwhelmed and when trying to discuss with other lenders, they don’t want to talk unless you’ve already filled out an application with them. I am NOT ready to apply today. I have 6 more months on my lease and prefer to apply towards its end.
    Thank you in advance. I look forward to hearing from you.

    Shannon Waiters

  116. Good morning Scott,

    It was so nice speaking with you this morning. Please let me know what we can do to be helpful moving forward.



    1. Shannon

      I will have my Associate Michelle McCue call you shortly

      Gustan Cho NMLS 873293
      National Managing Director
      Gustan Cho Associates | Loan Cabin Inc.
      1910 South Highland Avenue Suite 300
      Lombard, Illinois 60148
      Toll-Free 1-800-900-8569
      Direct Cell 1-262-8151
      Text For Faster Response
      Equal Housing Lender NMLS 1657322

  117. Hello,

    I just moved my family from Chicago, IL to Winston-Salem, NC to be near family.

    We’re closing on 704 Finsbury Rd, 27104 on August 11 and putting 20% down.

    I’m working with a mortgage broker to qualify for the loan and they are asking for a letter from my employer’s HR department regarding remote work. I’m not able to provide that at this time.

    Is your firm able to approve me for a loan without that communication, assuming I meet all financial requirements (I do)? Is this requirement a “lender overlay” as you refer to on your website?

    Scott Halverson

    1. Scott, we just got licensed in North Carolina. I will have our top loan officer Michelle McCue call you shortly. What is your number?

  118. I reside in Wisconsin, I owed back taxes both federal and state which became property tax liens, a few years back I ended up filing Chapter 7. The IRS released the liens however the state sent a letter saying they would not accept the chapter 7. Is there any chance of obtaining a mortgage licenses ??

  119. Hi Gusta, My name is James and I appreciate the information. I was a Loan Officer for about 8 years previous to the 2008 meltdown. When things started getting really bad I had an opportunity to start a completely unrelated business which I embraced at the time. Unfortunately after about four years the business I was getting my work from outsourced to a huge call center and I dissolved the business. Through the meltdown I lost multiple investment properties and destroyed my credit as well as going through a divorce it really destroyed everything I had going for me. When I tried getting back into the mortgage business I was hired by a company in Rhode Island but unfortunately was denied due to bad credit and possibly a no contact order due to the messy divorce. I apologize for the long message but I am now looking to get back into the business either as a loan officer or even a processor to start. Are there any suggestions you might have for me? Is your company still hiring?

    1. We are hiring experienced loan officers. What state are you in? We are licensed in multiple states. My advice is for you to get your license. Contact David Reinholtz at Tell him Gustan Cho referred you. If you have tons of outstanding collections, charged-off accounts, judgments, I recommend you file bankruptcy so you will not have any problems getting your NMLS licenses in any of the 50 states. Contact my Associate Michelle McCue at and talk to her about our business model and getting hired.

  120. Hi Gustan Cho,
    Great information you’re giving us! I am going to take the MLO course in a few days and will start my new career. I live in Texas and don’t want to get a Texas MLO license because I have bad credit and realize it’s going to be difficult to get one in Texas. I’m considering working for your company after I obtain my license. What state would be best for me to get my license in Illinois, California, Louisiana, or any others, first? Could you let me know the steps? Also, since I live in Texas and difficult to get licensed here, if working remotely for your company, what are the process of working remotely? Will I be trained remotely? How will I be able to obtain customers when I live in Texas with an out-of-state MLO license? Can I live in one state and work for an out-of-state company such as yours? Greatly appreciate your response and help!

    1. Yes, you can live in one state and get licensed in others. You will probably need to start working at a brick and mortar mortgage office to get trained. Getting trained remotely is difficult and nobody is hiring remote loan officers without any experience. I suggest you think about filing bankruptcy and getting rid of your past collections, charged off accounts and other bad credit so you will not have any issues getting licensed in any states including Texas.

  121. Saw you guys on the web and was wondering if you guys do business in Allentown, PA. I am looking into buying a new house and would interested in your services.

    1. No. You do not have to be employed by a lender to get approved for your state NMLS license. Certain states like California and Georgia do require sponsorship.

  122. Hi Gustan,

    I am in Minnesota and got hired to be a loan officer assistant. They require and will help me obtain my NMLS license. I am worried about my credit report because in college and after college I have had late payments on credit cards and student loans. I am all caught up now but am worried to start the process of getting my license if I will be denied for late payments. Should I still go for my license or change career paths? Thank you!

  123. Hi Gustan,

    I am in Minnesota and got hired to be a loan officer assistant. They require and will help me obtain my NMLS license. I am worried about my credit report because in college and after college I have had late payments on credit cards and student loans. I am all caught up now but am worried to start the process of getting my license if I will be denied for late payments. Should I still go for my license or change career paths? Thank you!

    1. You should be fine. Late payments and credit scores do not matter. As long as you are caught up you are all set.

  124. Hi Gustan,

    I’m located in NC and wanting to obtain my NMLS in the state of NC and possibly CA. I have multiple accounts on my credit report that are marked as charged off as well as some that are late. I have a few credit cards and as you can imagine, my credit is pretty bad. Do I have any chance of obtaining my licenses in the state of NC and/or CA?

    1. California is not a problem in getting licensed. In North Carolina, you may have to pay those off and/or enter into a written payment agreement. You should think about filing bankruptcy if you have a lot of outstanding unpaid debts. You will qualify for any state with a bankruptcy discharge.

  125. Hi Guston,

    Thanks for sharing your credit worries with getting licensed.

    I’m up to ears with credit card debt and each account is at it’s limit.

    I’m already licensed in PA but I’m worried if I stop paying my credit cards that PA may not renew my license.

    Do you think PA will hold my bad credit against me?



  126. I am curious if I will have any issues. My credit is around 580, but i have no collections, writeoffs, judgements, etc. Its low due to me having some issues around covid and my CC’s are maxed out and i have a bunch of personal loans. But i make all my payments, no lates, no collections, etc. Will i have an issue?

    1. As long as your credit score is 580 you can qualify for a 3.5% down payment home purchase FHA loan. Please contact us with your contact information at or call us at 262-716-8151. Or text us for a faster response.

  127. I am looking for a career change in NY, my credit is not great but not too bad, mid 600’s. I am 56 and a sales professional, looking to get into a position as a mortgage broker. How hard would it be for a person of my age to start over in this field providing I get my license? What are the job prospects in upstate New York? Any information would be helpful.

    1. Great career. You can work remotely. You would need to do a lot of self study and master mortgage processing since you are a new loan officer.

  128. Hello Gustan,

    Thank you for all of this amazing information. I’m currently in the middle of my 20 hour safe and hope to get licensed in Nevada and then move on to a few other markets. I have a fair credit score, however, have a foreclosure (no judgment) from 2015 and a credit card charge of from 2016. Also have 2 small medical collections (totaling about $700) but I may pay those off prior to submitting my application. Do you feel the foreclosure and/or charge-off will hinder my chances of being approved for my license?
    Again, thanks so much!

    1. You are fine. Foreclosure and bankruptcy is fine. Medical collections do not count. Contact John Grimaldi at 973-618-9833. He is based in Las Vegas and can give you a job opportunity.

  129. Thank you so much for your quick response! I’ve actually heard John’s name before. Will definitely reach out once I start looking for a sponsor! Have an awesome weekend.

  130. My name is Robin and I’m one of the Senior Building Specialists here at Big Buildings Direct.

    I just want to thank you for taking an interest in our company and I will be your point of contact moving forward. Below you will find all my direct contact information. We can communicate by phone, text, or email, whichever you prefer.

    One of the great things about us, at Big Buildings Direct, is that every single thing on YOUR building can be customized to fit your needs. So, whether you’re in the “dreaming stage” or if you are ready to get the ball rolling, I will do my best to help you on your quest to put up your perfect building. Along the way, I will share with you our process, details on construction, scheduling and lead times, and foundation requirements. I may even have some cost saving recommendation. I will answer any questions you may have and work with you to address any concerns you may have about and during this process.

    I’m sure you have questions about the process your building project, construction, or general information. I’ll be happy to answer those for you. You should be aware that the pricing on our buildings includes the cost of delivery and installation of our 100% galvanized steel structures. However, with the volatility of steel prices your quote will have to be built from scratch based on the requirements of your region of the country in terms of wind and/or snow capabilities and certifications to meet your local codes. With that in mind, I have some questions for you, too.

    PLEASE NOTE: If your goal is to build a “barndominium” or to live in your structure, our buildings are inappropriate for this purpose. We do not engineer our buildings for the risk categories required for a dwelling. Most metal building companies to not engineer to the specifications of a residence.
    In order to get a better grasp of your project, please answer the questions below, when you have a few moments.

    Your name, email address, and the best phone number to reach you
    Your city, state and zip code
    Any municipal requirements or codes you are aware of (so we can certify your building), ie. Ground snow load, windspeed requirements, etc.?
    Building width
    Building length
    How many windows would you like?
    How many walk-in/entry doors?
    Leg height/Eave height of the building (not roof peak height)
    Size and number of garage doors (If you’d like to provide your own garage doors, please let me know the finished opening size you will require.)
    What type of foundation will you provide (concrete, ground, gravel, etc.)?
    Will you be pulling a building permit and will you require engineered drawings?
    Any budget that you need to meet? (I’ll do my best to recommend the very best size and configuration to meet your budgetary needs.)
    Is there a specific time frame that would be ideal for your project?
    Do you have any special concerns about this project?

    I have extensive experience in Building Fabricating and Construction, as well as consulting and relationship management both domestically and internationally. Working with Big Buildings Direct is my dream career and I hold my coworkers, customers and vendors in the highest esteem. Please let me know if you’ve spoken to anyone else at our company or have worked with any metal building vendors.

    I find it works best if we have about a 15-20 minute phone conversation to go over the details and quality specifications of your building, talk about our order process, and answers any of your questions or concerns and to get you on our install list so your custom project is completed in the most timely and efficient manner. I’ll reach out to you after I receive the above information.

    I am available Monday through Saturday, but I take Thursdays off. My direct line is (813)521-7576. Please feel free to reach out to me. If you get my voicemail you can leave a message or send me a text and I’ll respond as soon as I can.

    I look forward to working with you on your project!

    Robin Campbell

    Big Buildings Direct


    1. Good afternoon Robin,

      Looking for a steel building on my 6 acre property. I already have a bid for concrete flooring 30×50. 4 inch gravel and 4 inch concrete. Need to store my 45 ft. Class A motor home plus other things so need a sizeable overhead door. Need a service door and at least 6 or more windows. Would be nice to have overhang, dormers, or skylight for extra lighting. Like to know what options we can have. I can pay cash but like to know if you guys offer financing. You can email me or text me on my cell at 262-716-8151. A lot of time I am on the phone so text me if you Need to talk to me over the phone. I have my wife Laurie and concrete contractor Luke Ludwig included on this email chain so we are all on the same page.

  131. Hello,

    I have recent late payments (less than 12 mos) and a credit score of 628. I am currently working on increasing that number by adding a few credit tradelines. I recently sold my home and have over 100k cash to purchase property will that make a difference? Do I need to wait 12 months before I apply for a mortgage loan?

    1. Easter,

      Normally you need 12 months timely payments to get an approve/eligible per automated underwriting system. However, there are instances where you can get approved with a few late payments in the past 12 months if you have compensating factors such as larger down payment or reserves. There’s a great chance that you may get an automated underwriting system approval. What state are you in and what is your number?

  132. Hello,

    I have two credit cards with outstanding balances. They are currently closed due to not making payments. I am in California, will i have trouble getting approved?

    1. As long as you have a pulse you will get approved for an NMLS licensed in California. Not so much in other states.

  133. How are the requirements for licensure in Tennessee regarding credit? I have about 12 late payments due to covid year. It dropped my credit to mid 500’s. Are they lenient or sticklers?

    1. Credit scores do not matter. As long as you are making attempts to pay your past due debts, you will be fine.

  134. I recently read that Illinois is requiring a net worth of $50K along with some combination of education and experience to obtain a residential mortgage license. My type of debt is student loan debt, and it’s almost impossible to pay down/off due to not being to get a decent enough job in my field, as a result of credit issues. I have a graduate-level degree…smh. The student loan debt prevents many people from getting the very jobs they need to repay the student loan or, in most cases loans. I read your story and was encouraged but I know states change their rules all the time. I’m just tired of employers acting as if student loan holders are pretty much the same as ex-cons.

  135. Hello , I already took the course and passed the test. I was assured that I would get my license accepted even with bad credit in Illinois. Thing is I haven’t paid anything on all my credit cards for the past 3 years. I was planning on filling for bankruptcy but have been advised not to do so. I’m just worried overall!! I lost my job twice which caused me to be buried in debt. Should I still apply ?

  136. Hi Gustan,

    My credit took hits due to a horrid cross country custody battle for one of my sons.

    Right smack on the back end, Covid.

    I now have a low credit score with one report from a small loan from the US government which I am making payments on. They have apparently just reported this to the credit beaureaus before I could get to it.

    My WFB account of 20+ years was a mess, was just closed and reported to early warning check systems with an outstanding debt of 2k, not much but it’s now on file.

    I also defaulted on a WFB credit card owing 20k since 2018 thanks to said custody battle, it’s due to fall off in just over 2 years so I have left it alone.

    I decided not to file bankruptcy (unless I really need to, to get my MLO license ?).

    I otherwise have good credit building happening now with a recent car loan and new credit card, as well as an old card I am still a signer on which has great history.

    My current score is 585 or 635, depending on which reporting agency.

    My rating was 850 for many years before my separation from hell.

    I’m working hard, should start to climb up in the next 2 months while I work on my MLO exam.

    Unless you think my current credit issues will prevent me from being licensed in CA ?

    Thank you in advance for any insight.

    Wishing you and all here a prosperous 2022.

    1. You are not going to have a problem getting your NMLS license approved in California but you will have issues in many states. I suggest you file bankruptcy and wipe out all of your debts. I had issues getting licensed in many states due to my past credit issues. After my bankruptcy discharge, I was licensed in every single state I applied for. Plus I can guide you on how to get your credit scores up to 700 FICO in less than a year from your discharged date. Credit scores do not matter.

      1. Hey there!
        My son and I have been real estate agents here in Ga for a few years. We sell about 10 Million a year. We are looking to get our Loan Originator license as well. I see you allow agents to work both real estate as well as lending side. Seeing as how we don’t have experience as of yet, how could we go about working with you guys? I am sure we could learn your systems just as quickly as we did in real estate and prove to be a real asset!

        Thank you for your time!

  137. I went back to my “source” for more information and some much-needed clarity; I got none. I went to the IDFPR on my own learned that the information sent to me was for a company and NOT for an individual. I’ve been looking to change my career to something more lucrative and more fulfilling. I have always been interested in real estate (but not in being a real estate agent). I’m encouraged by your story and will start working toward achieving my goal. Thanks again for sharing.

    1. We know nothing about New York but I am figuring they are not. Very liberal state so I am guessing you should have not problem.

  138. I have derogatory credit; collections and charge offs from 4 plus years ago. I want to apply licensure in Texas bec I currently reside there. I have read in their state guidelines regarding credit that they are looking for explanations on collections and chargeoffs that are 3 years old or less. Im not sure if I understood it correctly or I misinterpreted the guidelines and if it is a good thing since mine are 4 yrs and older. Can you pls give your insight on this or if you have heard from anyone who has current 2022 experience on this? Thank you for your very helpful q & a portion, I appreciate it very much 🙂

    1. Texas is one of the toughest states to get your NMLS license with bad credit. You need to have written payment agreements and make timely payments on all collections and/or charged off accounts or file bankruptcy.

  139. Hey I am applying for New York mortgage loan officer,, I have 3 charge off credit cards accounts in which one of them I successfully paid full to the creditor. For second I am already in a settlement with them and I am paying them monthly. For third I am still negotiating with them, with my scenario can I still be eligible for get my MLO license in New York?

  140. Hello Gustan,

    I recently passed my NMLS exam , and am considering applying to several states, however, I have lost a couple of jobs due to the pandemic and couldn’t pay any credit bills. Most are past due and a couple are charged off. I see I’m the thread that California is of the more lenient states-it is one of my choices for licensing. I’m addition I’d like to apply to other states as well. Currently, which states don’t place a lot of emphasis on credit. I can’t apply for chapter 7 bankruptcy until July of 2023. I could apply for chapter 13 though. I don’t want to wait too long without having a job. What is you best advice for me?

    1. If you file bankruptcy, you will not have any issues in getting approved in any state. There is no other state other than California that will not require you pay off collections and/or charged-off accounts. You can enter into a written payment plan and that would be okay too. I recently heard California now wants you to enter into a written payment plan on charged off accounts and collections accounts too.

    1. California will not care about credit. As long as you have a pulse you will get licensed there.

  141. I have a charge off from a repossession from back in 2016 and it was a joint account. The balance is $0 and it says closed account and charged off as bad debt/profit loss write-off. How do you think that would affect me getting a license in Florida?

  142. I have a judgment against me in Texas. Basically an ex co-signed on a car for me . He took the car when we split up and he filed a civil suit and because I didnt show up the judge gave him a default judgement. This was in 2007 and now I have a deficiency on my California Application. Any advice would be greatly appreciated.

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