How to Become a Mortgage Loan Officer

A Mortgage Loan Officer (MLO) is also called as a Mortgage Banker. This person works in both the real estate as well as the banking industry. There are two sectors in mortgage; namely residential and commercial and a loan officer can select any one of these or work for both. If a MLO specializes in the commercial sector, they can help businesses by acquiring physical assets like land, buildings, industry warehouses, etc. A residential mortgage loan officer guides people to secure loans for buying their personal homes, or investment property. It does not matter if you are trying to sell an empty gas station lot or a home; both positions require superb communication skills to make the sale.

Essential Steps to be Taken

  • Graduate in banking, finance or any related field is preferable.
  • Become a trainee in a bank or credit union that trains you professionally to become a lender. You should know about all federal housing programs in the US. This information can be assembled from agencies like the U.S. Department of Housing and Urban Development (HUD).
  • Forming liaisons with real estate companies and agents will help you immensely in attaining information about their products and also with landing potential customers.

Certified Mortgage Loan Officer

You should first become a member of the Mortgage Bankers Association (MBA). You need to enlist in this group to be eligible for the certification classes. You will need to show your college transcripts to be allowed entry into the group. Then, you should review your resume and have a friend proofread it for any grammatical errors. Your resume will be required for the Certified Mortgage Banker (CMB) proceeding. Residential and commercial MLOs have distinct certifications.

Next, you will need to accumulate letters of recommendations. The typical method is to politely ask two co-workers and the person in the corner office to each type up a letter on your behalf advocating your certification.

The Test

You will receive a sponsor that is issued by the MBA. They will refer to you the main topics to focus on for the test you will have to take. The MBA will also choose a test proctor for you. After the written portion, you will have an hour long verbal test.

Once you have gained a considerable experience as a mortgage loan officer, the next step is to enhance your current qualifications. If you are aiming to obtain a higher position in top management of a home mortgage firm, then earning an MBA would certainly help in this regard. Some colleges even offer tailor made programs like Certified Mortgage Banker (CMB). If you are too busy professionally, it can always be done through distance education or by enrolling in an Executive Program.