New to the world of Mortgage Lending and interested in getting your MLO license? Start here to get your questions answered regarding NMLS and how to obtain your Loan Originator license.
What is NMLS?
NMLS is short for Nationwide Mortgage Licensing System. It is an organization that regulates all licensing for loan originators. They are in charge of licensing for loan originators, as well as the education and schools necessary for loan originators.
How hard is the NMLS test?
The truth is that statistically the pass rate for the NMLS test was 56% between 2019 to 2021. While it is possible to retake the test, one must first wait 30 days before retaking.
Interestingly, the pass rate decreases for subsequent attempts at the test. Given these facts, one might be inclined to say the test is not easy, so make sure to prepare!
Obtaining an NMLS license:
This step is mostly about learning the necessary requirements and staying on top of your status as you do so.
First, get a checklist of what you need. To do this, go to your state’s State Licensing Requirement page and find out what the required documents are.
Second, be in communication with your company. Coordinate with them about any documentation and verification that needs to be sent to NMLS.
Third, create an account on the NMLS website. Log in and begin the process!
How much do MLO’s make?
The salary for MLO’s varies depending on the specialization.
For example, a residential MLO might make about $65,000/year, while a home trust MLO might make about $55,000 a year and a home equity bank MLO about $50,000/year.
Depending on what interests you, there are plenty of options for everybody to consider.
What is the SAFE act?
The SAFE act was passed in 2008 in response to the mortgage crisis. The goal was to provide greater consumer protection by regulating MLO’s under minimum guidelines for license and registration.
What is the pass rate for the MLO exam?
The SAFE MLO exam has a pass rate of about 56% so it is not easy for many applicants. Only about 60% of applicants pass on the first try. And the pass rate for subsequent attempts decreases to about 43%.
Together the average is about 56% of test takers so make sure to study and prepare for the exam!
Do I need good credit to obtain my NMLS?
This is not a federal requirement for MLO applicants. Check with your state to find out whether there are credit requirements for applicants. Only state regulators can access and review credit information of applicants.
What do MLO’s earn on each loan?
Most often, MLO’s are paid a percentage in commission on the loan amount. Usually, this percentage is about 1%. This means that on a $600,000 loan for example, the commission would therefore be $6,000. A good payout, indeed!