To become a Mortgage Loan Originator (MLO) with a license through the Nationwide Multistate Licensing System (NMLS), you need to follow several steps. Please note that the specific requirements may vary by state, and the steps described below are based on common practices and federal law. Always check with your state’s licensing department to follow the correct protocol. Here are the general steps to becoming an NMLS Mortgage Loan Originator:
Education From NMLS Mortgage School
Complete 20 hours of NMLS-approved pre-licensure education courses. These must include:
- 3 hours of Federal law and regulations
- 3 hours of ethics, including instruction on fraud, consumer protection, and fair lending issues
- 2 hours of training related to lending standards for the nontraditional mortgage product marketplace
- The remaining 12 hours can be relevant electives.
Pass the NMLS National 125 Questions Exam
Take and pass the NMLS National Test. This exam tests the competency of candidates to operate as a mortgage loan originator. It includes both national and state components. If you fail, you must wait 30 days before retaking it. If you fail three times, you must wait 180 days.
Background Check:
Submit a criminal background check. This includes fingerprinting so your information can be run through FBI criminal databases.
Credit Check
Undergo a credit check. A history of unpaid debts or bankruptcy might not prevent you from becoming an MLO, but you must demonstrate fiscal responsibility.
Experience
While not always required, some states may require some mortgage-related work experience.
Application
Submit an application through the NMLS website, including any necessary fees. The application will ask for your personal history and information about your past employment.
Maintain Your License
Once you’ve obtained your license, you must keep it current. This usually involves completing continuing education courses each year, paying the annual fees, and submitting to yearly background and credit checks. Remember to check with your state’s requirements, as they might have additional or slightly different regulations. For example, some states require a state-specific education course or exam.
| State | Branch $: | MLO$: | Distance Requirement: | Pre-Licensing Hours |
|---|---|---|---|---|
| Alabama | N/A | $105 | TBA | |
| Arizona | $500 | $350 | Reasonable distance. Can work from home, but can’t meet customers at home unless licensed as a branch. | 4 |
| Arkansas | $120 | $80 | TBA | TEST |
| California-DBO | $20 | $330 | Case by case basis. | 2 |
| Colorado-DRE | N/A | $129.50 | None | |
| Connecticut | $520 | $330 | Case by case basis. | 1 |
| Delaware | $520 | $530 | TBA | |
| District of Columbia | $1,320 | $330 | None | 3 |
| Florida | $225 | $329.25 | None | TEST |
| Georgia | ONLY IN STATE REQ $350 | $130 | None. But can’t advertise a home address | |
| Idaho | $520 | $330 | TBA | 2 |
| Illinois | ONLY IN STATE REQ $250 | $230 | Must be supervised a few times a week. If home is licensed as a branch, business cards can’t have the address. | |
| Indiana-DFI | N/A | $80 | TBA | 2 |
| Iowa | $40 | $80 | 90 miles | |
| Kansas | $320 | $130 | 90 miles. Can’t work from home. | |
| Kentucky | $420 | $80 | No more than a hour. | |
| Louisiana | $120 | $230 | 90 miles | |
| Maine | $140 | $50 | Must work from a supervised location | |
| Maryland | $1,120 | $409 | 75 mile distance requirement, CAN’T WORK FROM HOME! | 5 |
| Massachusetts | $70 | $645 | TBA | 3 |
| Michigan | N/A | $280 | None | 2 |
| Minnesota | ONLY IN STATE REQ $20 | $120 | None | TEST |
| Montana | $270 | $430 | TBA | 2 |
| Nebraska | $20 | $180 | Reasonable distance. Can work from home, but must license it as a branch. | 2 |
| Nevada | $520 | $240 | 50 miles, must contact NMLS if working from home. | 4 |
| New Hampshire | $520 | $130 | TBA | 2 |
| New Jersey | $1,020 | $180 | 90 miles. To work from home, must license the home as a branch. | 4 |
| New Mexico | $520 | $430 | No distance requirement, but if working from home, must license the home as a branch. | 3 |
| New York | $500 | $465.50 | TBA | 3 |
| North Carolina | $320 | $330 | 90 miles | 4 |
| Ohio | $520 | $180 | 90 miles. To work from home, must license the home as a branch. | 4 |
| Oklahoma | $170 | $490 | TBA | |
| Oregon | $350 | $110 | 50 miles, or to work from home, must license the home as a branch | 4 |
| Pennsylvania | $1,520 | $230 | 100 miles. | 3 |
| Rhode Island | $1,670 | $180 | None | 3 |
| South Carolina | $170 | $80 | 75 miles | TEST |
| Tennessee | $20 | $230 | 60 miles | 2 |
| Texas | $20 | $340 | None | 3 |
| Utah | $245 | $199.25 | TBA | TEST |
| Vermont | $1,020 | $130 | TBA | 2 |
| Virginia | $170 | $180 | 90 miles | |
| Washington | $604.46 | $155 | TBA | TEST and 4 hours |
| West Virginia | $1,350 | $80 | 75 miles | 2 |
| Wisconsin | $1,100 | $280 | TBA |
