Inaya Mclaughlin
To obtain a mortgage broker license, applicants must meet several requirements, including industry experience, pre-licensure courses, and passing a state-approved exam. The process varies by state, with some requiring a surety bond and FBI criminal background check. Applicants can register for the exam online or by phone, but walk-in tests are typically unavailable. After completing the necessary education and training, individuals can schedule their exam by creating an account on the NMLS website, paying the applicable fees, and selecting a convenient test center.
| Characteristics | Values |
|---|---|
| Test Name | Washington Designated Broker Test |
| Administered by | PearsonVue |
| Registration | Online, phone, or through the NMLS platform |
| Test Centers | Various locations across the country |
| Preparation | Study based on continuing education topics as described in WAC 208-660-600(3) and the Content Outline |
| Additional Requirements | Submission of fingerprints and an FBI criminal background check |
| Bond Certificate | Required in some states, with the amount set by state authorities |
| Renewal | Annual renewal required in most states, with fees varying by domicile |
| Additional Information | NMLS Resource Center provides information on test enrollment and preparation |
What You'll Learn
The pre-licensure education course
To become a mortgage broker, you must meet certain requirements, including pre-licensure education courses. These courses are designed to ensure that you have the necessary knowledge and skills to comply with federal laws and state requirements when operating as a broker. The specific topics covered in these courses can vary, but they typically include a range of relevant subjects such as federal laws and regulations, ethics, non-traditional mortgage products, and electives. The length of these courses may differ depending on the state, but they generally range from 20 to 30 hours.
In Pennsylvania, for instance, applicants for a mortgage broker license must complete an NMLS-approved pre-licensure education course that is at least 20 hours long. This includes three hours of focused study on Pennsylvania law. After completing the course, individuals can enrol for the test and pay the associated fees through the NMLS system. An exam date can then be scheduled via the NMLS profile or by contacting the exam administrator, Prometric.
The Nationwide Multistate Licensing System and Registry (NMLS) is a crucial platform for mortgage broker applicants. It serves as a central hub for applying, updating, and renewing licenses. Additionally, NMLS provides access to essential information, such as state-specific licensing requirements and testing details. This platform is widely recognised, as many states require applicants to undergo the licensing process through the NMLS website or a similar state-specific platform.
While the pre-licensure education course is a crucial step, it is just one part of the broader process of becoming a licensed mortgage broker. Other important considerations include fulfilling experience requirements, which typically involve one to three years of industry experience, and obtaining a surety bond to protect clients and comply with legal requirements. Once licensed, mortgage brokers must also stay up to date with ongoing training and testing to maintain their licenses and ensure they remain informed about industry changes and legal updates.
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Registering for the test
Registering for the mortgage brokerage license test involves several steps and requirements. The specific requirements vary across different states in the US, so it is important to check the relevant state-specific information. Here is a general guide on registering for the test:
Education and Training
Before registering for the test, applicants must complete the necessary education and training requirements. This includes taking pre-licensure mortgage broker education courses, which are typically 20 hours long but can vary between 20 to 30 hours. These courses cover various topics, such as federal laws and regulations, ethics, non-traditional mortgage products, and elective courses. The training must be completed within a certain timeframe, usually no more than three years after submitting the application.
Exam Preparation
Once the required education and training are completed, applicants can focus on exam preparation. The specific exam may differ depending on the state, but it often consists of a two-part SAFE Mortgage Loan Originator exam or a state-specific mortgage broker test. Familiarize yourself with the exam format, syllabus, and any study materials provided by the relevant state body or testing authority. Some states may also offer the option of attending mortgage broker schools to help prepare for the exam.
Registration Process
The registration process for the mortgage brokerage license test can be done online or via phone, depending on the state. In states like Pennsylvania, the Nationwide Mortgage Licensing System (NMLS) handles the licensing process. Applicants can create an account on the NMLS website, enroll for the test, pay the applicable fees, and then schedule their test appointment. Some states may also provide alternatives, such as contacting the exam administrator directly to schedule the exam.
Additional Requirements
In addition to the educational and exam requirements, there are other important considerations. Most states require a surety bond, which protects clients and the state against potential illegal actions by the broker. Background checks, including FBI criminal background checks, may also be necessary. Lastly, applicants should be aware of any ongoing training and testing requirements to maintain their license after obtaining it.
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Paying for the test
The process of obtaining a mortgage broker license varies by state, so it is important to be aware of the specific requirements of your state. Most states require applicants to have at least one to three years of experience in the finance industry, as well as 20 to 40 hours of classes through a state- or Nationwide Multistate Licensing System (NMLS)-approved course provider. The NMLS website contains detailed information on each state's specific requirements, including the relevant fees.
In addition to the cost of coursework, there will be a fee for the mortgage broker license itself. This fee includes a $100 Lead Paint Surcharge Fee in accordance with Chapter 482, section 22 of the Acts of 1993. In Massachusetts, for example, all mortgage broker license applications are submitted online using the NMLS, with any supporting documents mailed to the Division of Banks (DOB).
Another cost to consider is the surety bond. This is mandatory in many places and acts as a safety instrument that protects the state and your customers against potential illegal actions you may undertake. The bond amount is set by the state authorities and may be a fixed amount or depend on your volume of brokering business. To get bonded, you must cover a premium, which is a small percentage of the required amount. This will depend on the strength of your personal and business finances, with rates ranging from 0.5% to 5% for those with strong finances.
You will also need to budget for basic office supplies, such as computers, telephones, and software, as well as the potential cost of office rent.
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Scheduling the test
Scheduling your mortgage brokerage license test is a crucial step in obtaining your license and starting your career as a mortgage broker. While the specific steps may vary slightly depending on your location, here is a general guide to help you schedule your exam:
- Complete the Prerequisites: Before scheduling your exam, ensure you have fulfilled all the necessary prerequisites, including any required education courses, training, and experience. Most states mandate that applicants have one to three years of experience in the finance industry along with 20 to 30 hours of classes covering various topics such as federal laws, ethics, and mortgage products. Check with your state's licensing body or the Nationwide Multistate Licensing System (NMLS) for specific requirements.
- Register and Create an Account: Visit the website of your state's licensing body or the NMLS to register for the exam. In some states, like Washington, you can register online or over the phone. You may also need to create an individual account on the NMLS website, which will be necessary for scheduling your test.
- Enroll and Pay for the Test: After registering, enroll for the exam and pay the applicable fees. This step may involve selecting your desired testing window. Refer to the NMLS testing page or your state's testing guidelines for detailed instructions on enrollment and payment.
- Schedule Your Test Appointment: Once enrolled, you can schedule your test appointment. Choose a convenient test center from the list of available locations provided by the testing body, such as PearsonVue for the Washington Designated Broker Test. Consider any personal commitments and plan accordingly. Some testing bodies may accommodate reasonable requests for scheduling changes if notified in advance.
- Prepare for the Exam: Familiarize yourself with the exam content and structure by reviewing the Candidate Handbook, study guides, or other provided resources. Additionally, utilize exam preparation tools, practice tests, and, if applicable, consider enrolling in mortgage broker schools to enhance your readiness for the test.
Remember to refer to the specific guidelines provided by your state's licensing body or the NMLS to ensure you follow the correct procedure for scheduling your mortgage brokerage license test.
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Test day
On the day of your exam, make sure you arrive at the testing centre with plenty of time to spare. You will need to bring valid identification, such as a driver's license or passport, and your candidate handbook, which contains important instructions and information.
The test administrator will provide you with any necessary equipment and materials, such as a calculator or scratch paper. Pay close attention to any instructions given by the administrator and read through the exam carefully before beginning.
During the exam, focus on one question at a time and manage your time effectively. Answer the questions to the best of your ability, and if you are unsure, make an educated guess or come back to the question later if time permits. Remember the passing grade is 75% or higher.
After completing the exam, review your answers if time allows. Ensure you have marked your answers clearly and accurately on the answer sheet, if applicable. Once you are satisfied, submit your answers and wait for your results.
Good luck!
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Frequently asked questions
The scheduling of the mortgage brokerage license test depends on the state. In Washington, the Department examines all mortgage broker licensees at least once every five years. The Department can accommodate reasonable requests for scheduling changes on routine examinations with advance notice. In Pennsylvania, applicants can enroll for the test by scheduling it via their NMLS profile or by contacting the exam administrator Prometric at (877) 671-6657.
Most states require mortgage broker applicants to have at least one to three years of experience in the finance industry. Applicants must also take 20 to 30 hours of classes through a state or the Nationwide Multistate Licensing System (NMLS). The training includes three hours on federal laws and regulations, three hours on ethics, two hours on non-traditional mortgage products, and twelve hours on elective courses.
There are several costs associated with obtaining a mortgage broker license, including the coursework and exam, registering the entity with the state, office rent, basic office supplies like computers and telephones, and software. Obtaining a surety bond is also one of the most common mortgage broker licensing requirements, which requires a premium to be paid.
A passing grade for the mortgage brokerage license test is typically 75% or higher.
In the event that an applicant does not pass the exam, they must wait at least 30 days before retaking the test.
