A licensed mortgage broker in California | Real Estate Diary

 A mortgage broker act as a middleman between the home buyer and the bank or mortgage lender. They work directly with the consumer and the bank to assist borrowers in qualifying for a home loan or a refinance. In essence, his job is to search for an appropriate loan with the desired features at a reasonable rate. However, a mortgage broker is not considered a personal shopper for home loans. The only way to be sure you are getting the outstanding deal on your mortgage is to comparison shop yourself. Various state laws require that mortgage broker companies be licensed, and at least one employee or principal qualify as a registered or designated mortgage broker.

Some of the basic steps that one need to follow to become a licensed mortgage broker are such as –

Step 1 – Need to take the pre-licensure class

All mortgage brokers need to be licensed. Aspiring brokers need to complete a pre-licensure program, a 20-hour class that will cover all the relevant federal and state laws and financial regulations around mortgages, loan officer ethics, mortgage origination, and many more. These classes as well as the official test, are overseen by the National Mortgage Licensure System. 


Licensed mortgage broker


Step 2 – Need to pass the NMLS test

To become a mortgage broker one needs to pass the Safe Mortgage Loan Originator Test. Everyone takes the same national test, but there is also a state portion unique to your own region’s rules and regulations about mortgages. One can take this exam whenever he/she choose to take it. You do not have to wait for a specific time of the year. Once an individual passes the test, he/she is eligible to start brokering mortgages.

Step 3 – Getting to work

Since job success as a licensed mortgage broker depends on connections with clients and lending institutions. Most mortgage brokers get their first jobs at entrenched mortgage brokerage firms with existing relationships in place. You might want to check the job prospects in your predefined market before you start the licensure process.

Step 4 – One need to continue your education on mortgage lending 

Once you have your mortgage broker license, it is your responsibility to keep up with the latest developments on mortgage lending in your area. To keep your license current, you will be required to take a certain number of hours of continuing education courses each year. It is analogous to what accountants, doctors, and lawyers go through, and it ensures that you can do your job accurately and will give your clients the most up-to-date mortgage loan information.

So, these are some of the steps following which one can become a licensed mortgage broker in California.

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