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Mortgage Broker License: Mortgage Broker Career, Business and Licensing, Training at Mortgage Broker School, Become a Mortgage Broker

Mortgage brokers serve as an intermediary between consumers interested in purchasing land or property, and banks or other lending institutions. Mortgage broker licensing is required in all 50 states, and each state sets specific requirements and standards for professionals interested in becoming a mortgage broker. Mortgage broker training helps candidates learn the skills and basic real estate knowledge for their area, along with the technical aspects of working with financial and lending institutions. Mortgage broker course programs cover a variety of real estate and financial topics including real estate contracts, real estate law, financing packages, and how to run a mortgage broker business.

Pursuing a Mortgage Broker Career

A licensed mortgage broker helps to facilitate the transaction between financial lenders and buyers of real estate properties, serving as a real estate professional who works both as a salesperson and a guide. A mortgage broker career can be very lucrative and rewarding; brokers can work with a variety of people and learn about various properties and financing opportunities within their territory. The sales element of becoming a mortgage broker involves learning how to market and promote services; some mortgage brokers work with a corporation or company that assigns them specific contracts and clients to work with, while others work independently and must find customers and clients on their own. Mortgage brokers are essentially providing a service to consumers, and work on a commission basis per sale and transaction. A well-rounded mortgage broker education creates a foundation of knowledge and skills needed for a successful mortgage broker career, and formal mortgage broker training helps a professional become well-prepared for a variety of transactions and situations.

How to Become a Mortgage Broker

Becoming a mortgage broker is a simple process, requiring diligent study of real estate rules and regulations, a comprehensive understanding of real estate terms and definitions, and a basic understanding of the financial markets. Mortgage licensing is designed to protect consumers from the mortgage transaction, and a mortgage broker license is required before an individual can extend a loan and work with prospective buyers. Mortgage broker education requirements vary by state, and licensing laws applicable to each state can be obtained by contacting the National Association of Mortgage Brokers (NAMB).

After completing the necessary mortgage broker education courses, an individual is given the official title of Loan Originator or Mortgage Broker. A mortgage broker career involves working with different types of people, companies, and financial institutions. In some cases, a mortgage broker may turn to opening their own mortgage broker business that must comply with their state's guidelines and regulations.

What to Expect at a Mortgage Broker School

Anyone interested in starting a career in the mortgage broker business can enjoy a higher success rate after attending a mortgage broker school. Mortgage broker school courses can be taken online in a virtual format, or offline in a traditional classroom setting. A loan broker school is designed to provide specialized studies and courses in the mortgage broker business, giving students a chance to focus on key terms, definitions, laws and regulations, and preparing for the mortgage broker license exam. Mortgage broker training can provide specific instructions and knowledge on how to compile applications, real estate documents, and loan packages for specific situations. A mortgage broker school can also help candidates learn how to:

  • Find borrowers and elicit new business

  • Start their own mortgage broker business

  • How to originate business and commercial loans

  • How to analyze and review mortgage rates

  • How to manage specific loan situations and develop loan packages accordingly

  • How to guarantee and secure a fee

  • How to source different lending institutions such as the SBA, foreign lenders, and pension fund sources

Formal mortgage broker education also helps students prepare for their mortgage broker license exam, and pre-licensing courses increase the chances of passing exam after the first trial.

Getting a Mortgage Broker License

Mortgage broker licensing involves:

  • Completing necessary coursework and credit hours as required by each state

  • Submitting necessary forms per the mortgage broker license application

  • Submitting a fingerprint card and paying necessary fees

  • Passing a state test

  • Continuing studies in mortgage broker training and education

A mortgage broker license can only be granted to individuals who complete all necessary application requirements and pass a mortgage broker license exam. After obtaining a mortgage broker license, most states also require professionals to complete continuing education course credits in order to keep their mortgage broker license. This helps them to keep up with industry news, trends, and any changes in laws and regulations in their state. Continuing studies in mortgage broker education also help the mortgage broker network with other real estate and mortgage professionals in the industry.

Mortgage Broker Training and Education Requirements

Both online and offline classes are designed to deliver a comprehensive education in the field, offering pre-licensing mortgage broker course programs such as loan origination, marketing, real estate law, and lending policies. Other courses offered with the standard mortgage broker course program include:

  • The Loan Cycle and Servicing

  • Basic Mortgage Provisions

  • State and Federal Law Compliance

  • Secondary Mortgage Market

  • Department of Banking & Financing Forms

  • Underwriting and Loan Processing

  • FNMA Underwriting Guidelines

Students must pass the mortgage broker license exam before earning their official licensure and credentials, and the exam is usually offered once per month at a test site. After passing their exam, an individual must enroll in continuing education to keep their mortgage broker license. It is important to remember that mortgage broker licensing requirements vary by state, and contacting a local loan broker school or national mortgage association may be necessary to determine policies and procedures.

 

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