How To Become a Mortgage Loan Officer In NC?
Take the NMLS test (National Mortgage Lending System). Your understanding of the rules and regulations governing mortgage lending will be assessed during the NMLS exam, which comprises 100 multiple-choice tests. To pass, you need to score at least 75 percent overall.
Make use of the NMLS to apply for a mortgage loan originator license. You must fill out an application form, pay a licensing fee, and submit an image of your credit report to receive a permit.
Finalize your ongoing education. Once you have obtained your license, you must complete eight hours of continuing education each year. The rules and laws governing mortgage lending must be addressed during this ongoing education.
What Is The Cost Of Becoming a Mortgage Loan Officer?
A mortgage originator’s license for mortgage loans can cost between $700 and $1500. The prelicensing requirements for education comprise the MLO license’s most expensive cost. The cost of licensing varies by state. Obtaining your MLO license is an excellent investment in your career.
Pre-licensing Education
The licensing requirements are the most significant expense of being a mortgage loan officer. The education can be taken online or in a classroom environment, usually taking about 20 hours. The price of the pre-licensing training differs based on the provider and the type of education, but typically ranges between $300 and $500.
National Mortgage Licensing System (NMLS) Exam
After you’ve finished your pre-licensing preparation, you’ll need to pass the NMLS test. The NMLS exam is a 125-question multiple-choice test covering a range of mortgage lending subjects. The cost for the NMLS exam is $110.
State Licensing Fees
In addition to passing the NMLS exam, you’ll also need a mortgage loan originator’s license in your state. The price of licensing fees for state licenses varies between states. However, it is usually between $30 and $100.
Continuing Education
Once you have been licensed and granted your license, you must take continuing education regularly. Continuing education costs depend on the course company but are generally between $100 and $200 annually.
Total Cost
The total cost of becoming a mortgage loan officer can differ based on various factors, including the institution of your pre-licensing training, the price of the NMLS test and state licensing fees, and the cost of continuing education classes. You can expect to pay between $700 and $1500 to become a licensed mortgage loan officer.
Other Costs
Alongside the charges listed above, there are additional costs you could encounter as a mortgage loan officer. These expenses could include:
- Advertising and marketing costs
- Office space rental costs
- Technology costs
- Salary of employees
The sum of these expenses will vary based on the nature of your business as well as its scale. But including these costs in your budget is crucial when contemplating the possibility of a job lending on mortgages.
Return on Investment
Becoming a mortgage loan officer can indeed be a significant investment. However, it is crucial to remember that the job can be highly lucrative. The typical salary for mortgage loan officers is $65,000 a year, and the highest earners can earn more than $100,000 per year. If you’re willing to put in the effort and commit to a long period of time, becoming a mortgage officer could be a fantastic option to begin a successful career.
How Much Does a Mortgage Professional Make In North Carolina?
In North Carolina, a mortgage loan officer earns an average annual income of $88,500.
Average Salary
The median salary for a mortgage officer in North Carolina is $88,500 per year. The amount can be different based on various variables, such as the level of experience, location, and kind of lender the mortgage loan officer works for.
Factors That Affect Salary
Here are a few of the variables that could influence the salary of a mortgage loan agent in North Carolina:
- Experience More experienced mortgage loan officers get higher wages.
- Location Mortgage loan officers in cities of significant importance, like Charlotte and Raleigh, are typically paid more than those working in smaller towns.
- Type of lender Mortgage loan officers working for credit unions or banks generally earns less than those working for independent mortgage companies.
- Commissions Mortgage loan officers typically receive base salaries and commissions on loans they create. The amount of commission they earn can differ depending on the kind of loan and the lender.
Bonuses and Tips
As well as their salary and commissions, mortgage loan professionals are also eligible for tips and bonuses. They are usually awarded depending on the amount of loans made or the amount that was repaid. Prizes are generally offered by borrowers who are pleased with the assistance they receive.
Career Outlook
The outlook for the job of mortgage loan agents in North Carolina is expected to increase by 10% between 2020 and 2030. This is more than typical for all positions. This is due to the rising interest in home loans and the requirement for mortgage loan specialists who can assist borrowers with the complicated mortgage process.
What Is The Prerequisite Education For Mortgage Loan Originators In NC?
Federal law and regulations that last for 3 hours and two hours of ethical training covering topics such as fair lending, consumer protection, fraud, mortgages, and two hours of activity on the requirements for lending to non-traditional mortgages North Carolina laws and rules for one hour.
3 Hours of Federal Law
This course will cover federal regulations and laws that regulate the mortgage industry, such as the Truth in Lending Act, the Equal Credit Opportunity Act, and the Real Estate Settlement Procedures Act.
3 Hours of Ethics
This course will cover the ethical standards that apply to mortgage loan providers, including the necessity to be aware of conflicts of interest, treat consumers reasonably, and give accurate and complete information.
2 Hours of Non-Traditional Mortgage Lending
This course will cover the unique guidelines that govern mortgage loans that are not traditional, such as subprime mortgages and adjustable-rate mortgages.
12 Hours of Electives
The 12 additional pre-license training hours can be completed in any mortgage lending field, like an appraisal, real estate finance, or closing process.
4 Hours of NC-Specific Education
Alongside the standard requirements for education before obtaining a license, mortgage loan originators who reside in North Carolina must complete the 4-hour course, which covers specific laws and regulations in North Carolina.
All pre-license education courses have to be approved by Nationwide Mortgage Licensing System (NMLS). You can locate the list of approved classes on the NMLS website.
After you have completed the necessary pre-license training, you can apply for an originator license for mortgage loans at the North Carolina Commissioner of Banks.
FAQ’s
What are the educational requirements to become a mortgage loan officer in North Carolina?
In North Carolina, there are no specific educational requirements to become a mortgage loan officer. However, most employers prefer candidates with a bachelor’s degree in finance, business administration, or a related field. Additionally, completing courses in mortgage lending or obtaining relevant certifications can enhance your qualifications.
Are there any licensing requirements to work as a mortgage loan officer in NC?
Yes, to work as a mortgage loan officer in North Carolina, you must obtain a mortgage loan originator (MLO) license. This involves completing pre-licensing education, passing a written examination, and undergoing a background check. The license is regulated by the North Carolina Commissioner of Banks.
What are the steps involved in obtaining a mortgage loan originator (MLO) license in NC?
To obtain an MLO license in North Carolina, you need to complete 24 hours of pre-licensing education, which includes three hours of North Carolina-specific content. After completing the education, you must pass the SAFE Mortgage Loan Originator Test with a score of 75% or higher. Once you pass the exam, you can apply for your MLO license through the Nationwide Mortgage Licensing System (NMLS).
Can I work as a mortgage loan officer with a criminal record in North Carolina?
Having a criminal record doesn’t automatically disqualify you from working as a mortgage loan officer in North Carolina. However, certain criminal convictions may hinder your ability to obtain a mortgage loan originator license. The North Carolina Commissioner of Banks considers each case individually during the licensing process.
Is it necessary to gain prior experience in the mortgage industry before becoming a loan officer in NC?
While prior experience in the mortgage industry can be beneficial, it is not always a strict requirement to become a mortgage loan officer in North Carolina. Many employers provide on-the-job training and mentorship programs to help new loan officers develop the necessary skills and knowledge.
Are there any continuing education requirements for mortgage loan officers in NC?
Yes, mortgage loan officers in North Carolina are required to complete eight hours of continuing education annually. These courses help loan officers stay updated on industry regulations, practices, and any changes that may affect their role. The NMLS maintains a list of approved continuing education providers for loan officers to choose from.
