6 Steps to Secure a Mortgage Broker License

6 Steps to Secure a Mortgage Broker License

As the real estate industry booms, many people turn to it to start lucrative careers as brokers. As people buy more houses, they also look for financing options. This is where mortgage brokers come in. A mortgage broker is responsible for presenting all the home financing options to their clients. This helps the clients save time and choose the cheapest financing option to buy their dream home.

However, not anyone can decide to become a mortgage broker whenever they want. They need to go through specific steps to become one.  If you want to become a mortgage broker, follow these six steps to become one.

1.    Meet the Education Requirements

Every state has a minimum education requirement in place. In most states it’s a high school diploma, however, some states require you to have a relevant college degree to obtain your mortgage broker license. Additionally, all those looking for this license need to finish 20 hours of training of National Mortgage Licensing System (NMLS) to learn the laws and regulations of mortgage brokerage business.

2.    Take the NMLS Exam

After finishing the 20 hours of training, you’re eligible to take the NMLS test. You must pass the test to get your license.

3.    Get Your Mortgage Brokerage Registered

After passing the test, you’re eligible to get your mortgage brokerage registered as a valid business. You will need a name, a location, an employer identification number, and an appropriate business structure like corporation, partnership, etc.

4.    Get a Mortgage Broker Bond

The state mandates you to have a valid mortgage broker bond to receive your license. A mortgage broker bond is filed to ensure that your brokerage will abide by the laws and regulations of the state(s) you’re operating in. Failure to do so will result in penalties and revocation of license by the state.

You’ll be required to pay a percentage of the bond money to surety to secure the bond. This percentage is decided based on the prospective mortgage broker’s credit score and financial history.

5.    Send Bond & License Application to State

As soon as you receive your bond, complete your license application, and send the complete documentation to the state. Your application will be vetted, and you’ll be subjected to a thorough background check.

6.    Become a Licensed Mortgage Brokerage

Once your application is approved, you’ll receive a mortgage brokerage license to operate in your state. In order to avoid penalties, cancelation of bond, or revocation of license, you’ll be required to follow all the mortgage broker laws of the state.

Person filing broker mortgage application.

Mortgage Broker Bond in Los Angeles

Secure a mortgage broker bond to get your license now. SuretyEZ provides all kinds of license and permit bonds in Los Angeles, including mortgage broker bonds. They’re committed to ensure that the brokers uphold the laws of the state and protect the clients from fraud. Start today by filling out an application form. For inquiries, get in touch.

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