Training a New Mortgage Loan Officer Without Any Experience

Training a New Mortgage Loan Officer Without Any Experience

Gustan Cho Associates are mortgage brokers licensed in 48 states

This blog explores the process of training a new mortgage loan officer, particularly those without prior experience. Gustan Cho Associates offers a streamlined training program tailored for individuals aiming to embark on a career as a mortgage loan officer. Training newcomers in this field poses significant challenges for both mentors and rookies.

For over a decade, Gustan Cho Associates has excelled in training new mortgage loan officers needing more prior experience. While many mortgage companies need experience to hire licensed loan officers, Gustan Cho Associates welcomes motivated individuals willing to learn and strive toward becoming successful loan officers.

Studying and Passing the NMLS MLO Exam

Training a new mortgage loan officer to pass the NMLS Exam is daunting. Regardless of intelligence or test-taking abilities, success hinges on dedicating countless hours to study. I’ve witnessed attorneys, pharmacists, and doctors fail the NMLS examination due to insufficient preparation. However, passing the NMLS Test merely initiates becoming a loan officer. Beyond grasping mortgage lending guidelines for FHA, VA, USDA, and Fannie Mae/Freddie Mac, new loan officers must also delve into various case scenarios to adequately prepare for the role.

Pre-Licensing Stage of Becoming a New Loan Officer

Training a new mortgage loan officer requires dedication, time, and patience. Candidates cannot become expert mortgage loan originators overnight. To become a mortgage loan originator, complete a 20-hour pre-licensing NMLS-approved mortgage course.

This pre-licensing course can be taken in a live classroom or completed online. Various types of 20-hour NMLS-approved pre-licensing courses are available. Some are straight 3-day courses, while others are only in the evenings for those who work full-time. Courses are also scheduled on weekends and spread out over a few weekends. Click Here to get connect with our loan officers

Investing In MLO Training Courses To Pass NMLS Exam

Numerous mortgage loan originator training schools are available when it comes to training a new mortgage loan officer, and you can search the internet to find the best fit for your schedule and budget. Tuition for the 20-hour NMLS pre-licensing course varies widely. Some schools charge less than $200, while others exceed the $400. This intensive course covers extensive materials and includes practice tests to prepare aspiring loan officers effectively.

Getting Ready For the National NMLS EXAM

In training a new mortgage loan officer to function as both a realtor and mortgage loan originator simultaneously, the initial step is to prepare for the national NMLS exam. After completing the 20-hour pre-licensing course, students must pass an exam, typically administered by the school.

Most institutions allow multiple attempts, and some offer open-book tests, ensuring all students pass. However, passing the pre-licensing course alone doesn’t adequately prepare individuals for the rigors of becoming a mortgage loan officer; there’s still much more to learn and master in the process.  Join Us

What Is Next After Completing The 20 Hour NMLS Approved Pre-Licensing Class

Most students who passed the 20-hour NMLS pre-licensing class think that they are now ready to take the national NMLS exam. This is not true. The short quizzes that are part of the 20-hour NMLS pre-licensing exam do not even come close to preparing for the national NMLS test. The national NMLS exam is a 3-hour test that consists of 125 questions.

Pass Rate of the National 125 Questions NMLS EXAM

When training a new mortgage loan officer, it’s crucial to note that the first-time pass rate for the NMLS exam is just under 70%. To enhance success, I recommend that they read the textbook once and extensively review numerous practice multiple-choice questions.

From my experience, some loan officers fail the national NMLS exam after weeks of studying because they concentrate solely on the text material rather than the practice test questions. New mortgage loan officers must consistently practice over 2,000 test questions to pass your federal NMLS exam.

After Passing The National NMLS Test

Training a new mortgage loan officer without prior experience can be manageable. Companies like Gustan Cho Associates eagerly welcome highly motivated individuals to their mentorship program for mortgage loan originators. Once you’ve successfully passed the National NMLS exam, the next step involves obtaining licensure in the states where you intend to originate loans.

While some states permit licensing without sponsorship from a mortgage company, others mandate sponsorship and employment with a mortgage company beforehand. Upon passing the NMLS test, it’s advisable to commence your search for a suitable mortgage company to join. Despite numerous options available, it’s important to note that most mortgage companies are hesitant to hire brand-new loan officers.

Is it Hard to Get Hired as a Loan Officer?

Getting hired as a loan officer can be challenging, with the difficulty varying based on several factors. Educational background and experience play significant roles, as some positions may require only a high school diploma. In contrast, others prefer candidates with bachelor’s degrees in finance or related fields.

Licensing is typically necessary, with candidates needing to pass exams and complete pre-licensing education. Networking is crucial; building relationships with professionals in the industry can lead to referrals and job opportunities.

The ease of hiring is also influenced by market demand, which can fluctuate depending on economic conditions and trends in the housing market. Employers seek candidates with strong communication skills, attention to detail, and sales ability. Training programs may be available, especially for those lacking previous industry experience. Overall, persistence, relevant skills, and networking are key to securing a position as a loan officer.

How To Get Started As A New Mortgage Loan Officer

Most mortgage companies typically seek loan officers with at least two years of experience in loan origination. Some even require a minimum monthly production over the preceding year. However, there are opportunities for newly licensed mortgage loan originators, albeit usually in the role of a Loan Officer Assistant (LOA).

LOAs receive a modest salary, minimum wage, and a commission per file. The rationale behind many companies’ reluctance to hire brand-new loan officers lies in the time-consuming process of training a new mortgage loan officer. Like training a new trial attorney, educating a new loan officer requires patience and can only be accomplished after some time.

Training a New Mortgage Loan Officer Who Are Experienced Real Estate Agents

Gustan Cho Associates administers the Verified Preferred Realtor Partner Network (PRPN) program, overseen by Director Ronda Butts. Alongside discussing the challenges inherent in training a new mortgage loan officer, we emphasize the unique complexities they face. Training a mortgage loan officer who is also a licensed real estate agent proves more efficient than training one who is not.

Can You Hold a Loan Officer and a Real Estate License at The Same Time?

Gustan Cho Associates provides a unique program to train experienced realtors to seamlessly transition into a mortgage loan officer role. This specialized training, tailored for real estate agents looking to expand their expertise and become licensed as realtor/loan officer professionals, focuses on training a new mortgage loan officer.

In the following paragraph, we explore the comprehensive training program designed to equip realtors with the skills and knowledge necessary to excel in their new role as mortgage loan officers.

Realtor Loan Officer Conflict Interest

When training a new mortgage loan officer, it’s important to note that there’s no conflict of interest for a real estate agent to serve as a loan officer simultaneously within the same transaction. Many homebuyers prefer dealing with a single professional handling their home purchase and mortgage origination rather than involving two individuals.

Real estate agents quarterback the home purchase process, from contract signing to closing. It makes sense for real estate agents, especially those in training as a new mortgage loan officer, to manage the home loan process and receive compensation accordingly.

Concerns about time management for the real estate agent, particularly when balancing their role as a new mortgage loan officer, are unfounded, as the additional responsibilities can be integrated seamlessly into their existing workflow.

How Does The Gustan Cho Associates Dually Licensed Realtor/MLO Program Work?

Once the real estate agent become licensed as a mortgage loan originator, the agent will be sponsored by NEXA Mortgage dba Gustan Cho Associates and will be an employee of Gustan Cho Associates. Frequently asked questions include doesn’t it take time to become an experienced loan officer? Answer is training a realtor become a loan officer does take a lot of time.

How Long Does It Take For Training a Realtor Become a Loan Officer?

Takes many years to become an expert loan officers. The team at Gustan Cho Associates has a national reputation for being able to do loans other loan officers cannot do at Gustan Cho Associates. We will go over why the team at Gustan Cho Associates is able to do mortgage loans that other lenders cannot do. We will go into detail why 75% of our borrowers are folks are borrowers who could not qualify at other lenders.

When Can The Realtor/Loan Officer Start Originating Their First Loan?

Training a New Mortgage Loan Officer Without Any Experience

The realtor/loan officer BDM can start originating their first loan the minute they are licensed and onboarded at NEXA Mortgage dba Gustan Cho Associates. The real estate agent can start start by working as a dually licensed realtor and loan officer at the same time with their home purchase buyer.

The newly licensed loan officer/real estate agent will be paired up with a veteran experienced loan officer at Gustan Cho Associates. The real estate agent/loan officer will be the assigned loan officer for the home buyer. The experienced veteran loan officer partner of the realtor/loan officer will be assigned as the loan officer assistant.

Co-Partnership With Realtor/Loan Officer and LOA

The loan officer assistant will do most of the work and take the loan from the minute the home purchase contract is turned in until the loan closes. The assigned loan officer/realtor will get copied on all emails and will know every step of the mortgage process until the loan closes.

The realtor/loan officer gets trained by observing and participating  with the assigned loan officer assistant through the entire mortgage loan process. After several loans, the realtor/loan officer will be able to take a loan of others from start to finish. The realtor/loan officer will have full ongoing support of Gustan Cho Associates and the staff at corporate headquarters if they have any questions or have a case scenario.

Can The Realtor/MLO Originate Own Loans Independently Without LOA Partner?

The real estate agent can eventually originate their own loans, get leads assigned from the branch, and/or run their own team, and/or branch. NEXA Mortgage dba Gustan Cho Associates is licensed in 48 states, including Washington DC, Puerto Rico, and the U.S. Virgin Islands. It is a unique program because you can earn income the minute you are licensed with no experience in loan origination.

The team at Gustan Cho Associates are experts in training a realtor become a loan officer at the same time. Training a realtor become a loan officer at the same time will not affect the real estate agent’s time away from their homebuyer for loan origination activities. We will detail training a realtor become a loan officer at the same and how easy it is. Most homebuyers prefer dually licensed realtor/loan officer professionals versus having two different people handle their home purchase transaction.

Earn Income From Both Sides

Gustan Cho Associates are experts in training a new mortgage loan officer who are experienced real estate agents. A veteran loan officer teams up with the newly licensed loan officer/realtor and works as a team together. The newly licensed REALTOR/MLO is the assigned loan officer and the experienced loan officer will be the loan officer assistant (LOA). The loan officer assistant (LOA) will be a seasoned licensed loan officer who will take charge and work on the file from start to finish.

The REALTOR/MLO will be part of the mortgage loan process but does need to get involved unless they want to. The loan will close under the REALTOR/MLO as the loan officer of record. This program will be available in 48 states. You can visit Dino Hasapis at for more information.

Can I be a Mortgage Loan Officer as a Side Hustle?

Working as a mortgage loan officer as a side hustle is feasible but requires thoughtful planning and management. Firstly, ensure compliance with licensing requirements, as most states mandate specific credentials.

Understanding your employer’s policies regarding side jobs is essential, particularly if they could impact your primary role. Time management becomes crucial, as well as balancing client meetings, paperwork, and industry updates alongside your main job and personal commitments.

Flexibility is advantageous, as client interactions may extend into evenings or weekends. Building a client base requires effective networking and marketing efforts. Adherence to industry regulations and ongoing professional development are paramount for maintaining credibility and avoiding legal issues. Consider becoming a mortgage loan officer to supplement your income and explore your interests in the lending sector. With careful planning and dedication, achieving your financial goals can be rewarding.

Training a New Mortgage Loan Officer Who Is Licensed Realtor

Not every loan application is the same. There are hundreds if not thousands of different types of case scenarios a loan officer will run into throughout their careers. There is no shortcut to training a new loan officer. Candidates can memorize all of the mortgage guidelines inside and out. That will not prepare them in being an experienced loan officer.

Candidates need to go over dozens if not hundreds of loan case scenarios. They need to actually take a mortgage application from qualifying the borrower. Need to know in preparing the mortgage documents, submit it for processing, clearing the conditions after the mortgage underwriter issues a conditional loan approval. To know about getting a clear to close, to closing the loan.

Learning Mortgage Guidelines and Programs

New loan officers need to not just know the minimum lending guidelines by FHA, VA, USDA, and Fannie/Freddie. They also need to familiarize themselves with their employer’s lending overlay requirements. Lender overlays are the individual mortgage company’s lending requirements that are in addition to the minimum federal lending guidelines. For example, under HUD 4000.1 FHA Handbook the minimum credit score required for a 3.5% down payment home purchase FHA Loan is 580 FICO.

Not All Lenders Have Same Guidelines on The Same Loan Program

Most mortgage companies will not accept borrowers who do not have at least a 620 or 640 credit score. These higher requirements on credit scores to qualify for an FHA loan are called a lender overlay on credit scores. Just because a borrower meets the minimum FHA, VA, USDA, or Conventional Loan Lending Guidelines does not mean the lender cans approve and fund the mortgage borrower. Always check the company’s overlays

New Loan Officer Opportunities for Experienced Real Estate Agents

Gustan Cho Associates will accept individuals who are eager and willing to train as a loan officer. New loan officer recruits need to be full-time. This is because training to be a new loan officer cannot be done part-time. New loan officer recruits will be assigned to an Area Sales Manager and Area Operations Manager and work closely one on one.

The first dozen mortgage loan files will be worked together with a senior loan officer from the pre-approval stage to closing. If you are a career-minded, goal-oriented, hard-working motivated individual who would like to start a new career as a loan officer, contact Gustan Cho Associates at or call and/or text us at (800) 900-8569.

FAQ: Training a New Mortgage Loan Officer Without Any Experience

  • What does this blog cover? This blog discusses Gustan Cho Associates’ streamlined training program for new mortgage loan officers who need experience, emphasizing the challenges mentors and rookies face in this process.
  • How successful is Gustan Cho Associates in training new loan officers? Gustan Cho Associates has successfully trained new mortgage loan officers without experience for over 10 years, providing opportunities for motivated individuals committed to learning and hard work.
  • What’s involved in studying for and passing the NMLS MLO Exam? Passing the NMLS Exam is challenging and requires extensive study. Even individuals with advanced degrees have failed due to insufficient preparation. After passing, further learning about mortgage lending guidelines and case scenarios is necessary.
  • What’s the pre-licensing stage of becoming a new loan officer? Becoming a mortgage loan originator requires commitment and patience. Before taking the exam, candidates must complete a 20-hour pre-licensing NMLS-approved mortgage course, available in various formats.
  • How can one prepare for the National NMLS Exam? The exam is a 3-hour test with 125 questions. Despite a pass rate of around 70% for first-time test-takers, success requires thorough preparation, including practicing with multiple-choice questions.
  • What happens after passing the National NMLS Test? After passing, candidates must get licensed in the states where they plan to originate loans. Finding employment with a mortgage company is the next step, which can be challenging for new loan officers without experience.
  • Can someone simultaneously be a loan officer and a real estate agent? Gustan Cho Associates offers a program for experienced real estate agents to become licensed mortgage loan originators (MLOs) simultaneously, providing a streamlined path to earning income from both professions.
  • How does Gustan Cho Associates’ program for dually licensed realtors/MLOs work? Under this program, real estate agents become MLOs sponsored by Gustan Cho Associates. They work alongside experienced loan officers and receive training and support throughout the mortgage loan process.
  • Is working as a mortgage loan officer as a side hustle possible? Yes, it’s feasible, but it requires careful planning, compliance with licensing requirements, effective time management, and balancing mortgage-related activities with other commitments.
  • What opportunities does Gustan Cho Associates offer for new loan officers who need experience? Gustan Cho Associates welcomes motivated individuals who commit to full-time training as loan officers. They provide one-on-one support and guidance through the initial learning curve.

This Article on Training a New Mortgage Loan Officer Without Any Experience Was UPDATED On May 6th, 2024.

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