If you’re good with numbers and want to work in the real estate and mortgage industries, you might be interested in becoming a mortgage broker. Knowing what the role entails and what the requirements are can help you pursue this profession more easily.
According to data from Glassdoor, mortgage brokers in the United States make $105,028 per year on average, which is much higher than the national average of $63,000 in 2022, according to the Bureau of Labor Statistics (BLS).
According to finance company Nerdwallet, brokers are paid by the lender when a loan is closed, with the fee typically ranging from 1% to 2% of the total loan amount.
Becoming a mortgage broker does not require a college degree. However, in order to qualify, you must have a high school diploma in all 50 states.
Alternatively, you must pass the General Educational Development Test (GED). You will receive your GED after passing all four exams with a score of 145. Even if you did not graduate from a traditional high school, this would serve as your diploma.
All mortgage loan originators must be licensed under the Secure and Fair Enforcement Licensing Act (SAFE). This is also referred to as Title V of the 2008 Housing and Economic Recovery Act. As a result, you must obtain an individual license from the Nationwide Multi-State Licensing System and Registry (NMLS).
Pass the NMLS exam after completing the pre-licensure course. This exam, known as the SAFE Mortgage Loan Originator Test, assesses your knowledge of mortgage practices as well as state guidelines and regulations. With a minimum score of 75%, you can pass both the state and federal portions of the exam. Then, each year, you can renew your license by passing background and credit checks.
Register your mortgage brokerage after you pass your exam and complete the required coursework. The requirements for registering a mortgage brokerage differ from state to state. Register your business with your state’s licensing authority, providing information such as your business name and location. Do consider whether you want a physical location to provide your services or if you want to run an online brokerage business as you register your brokerage.
Apply for your mortgage broker license after you pass the exam and register your business. The NMLS can help you determine your state’s requirements. To obtain a mortgage broker license, most states require candidates to pass an exam, pay a licensing fee, obtain the appropriate bond, and submit an application.
Obtaining a mortgage broker license usually entails obtaining a bond. A mortgage broker bond protects your clients in the event that your brokerage violates any rules or regulations while in operation. It also assists you in proving your legitimacy to potential customers.
A career as a mortgage broker can be both rewarding and challenging. Strict legal compliance, good relationships with customers and financial institutions, and your own commitment to continuous improvement are all prerequisites for success as a mortgage broker. But above all, you must always be prepared to offer multiple options. Visit our broker approval page to apply and quickly add more options to your catalog!