As with any profession, mortgage loan officers need to complete training and pass examinations in order to obtain a professional license. Since mortgage firms and banks can not hire employees who do not have a license, training is a necessity. It is also illegal to broker or originate mortgage loans without a license, leaving those who do so subject to prosecution by their respective states.
In simple terms, officers need to complete a certain number of hours of professional training in order to be eligible for a license, or to renew a license. The number of hours varies from state to state, but most set twenty hours for new licenses and eight to ten for renewing licenses.
Students can choose from traditional or Online loan officer training . Coursework should be heavily weighted toward federal mortgage laws and regulations. State laws should take up another chunk of course time with subjects like fair lending practices, ethics, and consumer protection filling the remaining time.
It is a good idea for loan officers to check that a given training program has been approved by both their state and by the National Mortgage Licensing System before enrolling. This will ensure that the course content meets state and federal training requirements so that they aren’t surprised to discover that their program doesn’t meet the standards. They want to make sure everything goes smoothly when they file for their license.