This guide covers training a new mortgage loan officer without any mortgage experience. This guide on training a new mortgage loan officer will cover how Gustan Cho Associates has successfully trained new mortgage loan officers without experience for over ten years.
Our streamlined program offers a pathway for people to expand their careers as loan officers, one of the industry’s most challenging yet rewarding professions. Training a new mortgage loan officer is one of the most difficult tasks.
Training a new mortgage loan officer is similar to training a lawyer straight out of law school who just passed the Bar Exam. With all the studies and exams out, how will you market yourself and originate mortgage loans? In the following paragraphs, we will cover training a new mortgage loan officer.
Steps To Training a New Mortgage Loan Officer
Passing the NMLS (Nationwide Multistate Licensing System) Mortgage Loan Originator (MLO) National Exam requires thorough preparation and understanding of the mortgage industry. Here are the steps you can take to increase your chances of success:
Studying and Passing the NMLS MLO Exam
There are two different types of loan officers. Residential and commercial loan officers. Residential loan officers are regulated and need to be licensed to originate loans. Some residential loan officers originate commercial and residential loans.
Commercial loan officers do not require to be licensed in most states. Only nine states require commercial loan officers to be licensed through the NMLS. Spend the final days before the exam reviewing and refreshing your memory.
Focus on key concepts and any areas where you struggled during practice exams. The NMLS Exam is a formidable challenge, requiring countless hours of study. Even professionals such as attorneys and doctors may only succeed with proper preparation. After passing the NMLS Test, the journey is just beginning.
Pre-Licensing Stage Training a New Mortgage Loan Officer
Training a new mortgage loan officer starts with the pre-licensing stage. All new loan officer recruits need to take a 20-hour NMLS continuing education course. The 20-hour NMLS national exam is a one-time deal and has very little to do with taking and passing the national NMLS loan officer exam:
To become a mortgage loan originator, candidates must complete a 20-hour NMLS-approved mortgage course. Options include various schedules and prices to suit individual needs.
After completing the 20-hour NMLS course, they must take the federal national NMLS 125-question exam. The national NMLS exam is a three-hour multiple-choice exam. Candidates need to score 75% to pass the national NMLS exam.
Training a New Mortgage Loan Officer Pass The National NMLS Exam
Many training schools are available, with tuition varying from under $200 to over $400. This intense course prepares candidates for the national NMLS exam. Obtain materials such as textbooks, online resources, practice exams, and study guides. The NMLS provides a content outline that you can use to guide your studying.
Loan officer candidates need to pass the national 125-question NMLS exam to be able to apply to state mortgage licenses. Study federal laws and regulations that pertain to mortgage lending, such as the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), and Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act.
Preparation for the national exam is an intensive process, including completing a 20-hour pre-licensing course and further studying beyond that. It’s a challenging 3-hour test consisting of 125 questions. Take practice exams to understand the exam format and the types of questions you’ll encounter. This will also help you identify areas where you need more review.
Training a New Mortgage Loan Officer After Passing the National NMLS Test
Get a good night’s sleep before the exam. Eat well and stay alert and focused. Arrive at the exam center early to reduce stress. Take the Exam: Read each question carefully and thoroughly during the exam. You’ll receive your score immediately after completing the exam. Passing scores are typically around 75%. If you pass, you’ll receive a passing score report that you can use to apply for your license. Remember that preparation is key to success.
Eliminate each possible wrong choice and choose the best choice. Review Your Answers: Review your answers before submitting the exam if time permits. Double-check for any mistakes or questions you may have misinterpreted. Wait for Results:
Take your time to study thoroughly and understand the concepts rather than memorize answers. Good luck! The new loan officer must get licensed in the desired states. Opportunities vary among states and companies, with Gustan Cho Associates ready to mentor committed individuals.
How to Get Started as a New Mortgage Loan Officer
Check Eligibility Requirements: Ensure you meet the eligibility criteria set by the NMLS, including completing the required pre-licensing education (PE) courses.
Pre-Licensing Education (PE) Courses: Enroll in and complete the required pre-licensing education courses. The required hours vary by state, but it’s typically around 20 hours. Make sure the NMLS approves the course.
Many mortgage companies require experience, but Gustan Cho Associates offers opportunities even for newcomers. Training a new loan officer takes time, and the process is likened to training a new trial attorney. Understand key concepts, terminology, regulations, loan types, interest rates, and underwriting processes. Be familiar with federal laws such as RESPA, TILA, and SAFE Act.
Training Realtors to Become Loan Officers
This program is designed for experienced real estate agents who want to become loan officers. Details about the training process, advantages, and ease of this dual role are discussed in this section.
Earn Income As a Realtor and Loan Officer at The Same Time
Understand ethical standards and anti-fraud measures relevant to the mortgage industry. Familiarize yourself with the exam format. The NMLS MLO National Exam is a computer-based test with multiple-choice questions and case study scenarios.
Keep up with industry news and updates leading up to the exam date. Regulations and practices can change, and staying informed will help you answer questions accurately.
Practice time management while taking practice exams. You’ll have limited time to complete the exam, so pacing yourself is crucial. Gustan Cho Associates offers a unique opportunity for experienced real estate agents to earn income as REALTOR and MLOs. This program is available in 48 states.
Training a New Mortgage Loan Officer on Guidelines and Programs
Don’t expect to know all the guidelines at once. Understanding the agency guidelines, lender overlays, and hundreds of mortgage loan programs in today’s markets is impossible. Not all lenders have the same requirements on FHA, VA, USDA, Conventional, Jumbo, and non-QM loans.
There are many loan officers that specialize in a particular area of loan origination. For example, some loan officers may just do reverse mortgages while other loan officers may just originate hard money loans.
Becoming a loan officer for residential and commercial loans simultaneously requires commitment, time, and hard work. New loan officers must familiarize themselves with various guidelines and lender overlays. Understanding these nuances requires extensive training and experience with real-world scenarios. Understand ethical standards and anti-fraud measures relevant to the mortgage industry.
New Loan Officer Opportunities for Experienced Real Estate Agents
Realtors can become loan officers simultaneously and get paid on both sides. Gustan Cho Associates provides one-on-one training opportunities for recruits. Those interested in starting a new career as a loan officer with full support can contact John Parker, NMLS 124935 at Gustan Cho Associates, at jparker@gustancho.com or call John Parker, NMLS 124935 at 215.686-4737. Text us for a faster response. Or email John Parker at jparker@gustancho.com. The John Parker Mortgage Group is available seven days a week, evenings, weekends, and holidays.
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