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Mortgage Broker Licenseby Paul Donohue Requirements for and functions of the mortgage broker license have evolved in order to protect consumers while they obtain mortgages. The establishment of the National Mortgage Licensing System and Registry (NMLS) guards consumers against fraud and enables the public to access the license status of the loan officer or broker with whom they are working, the name of the company or companies with whom he or she holds that license, the branch where he or she works and his or her employment history going back 10 years. Professionals who hold a mortgage broker license are experts in real estate financing and who function like liaisons between the consumer and the companies actually loaning the money for the mortgage. The Mortgage Broker License indicates that the Mortgage Broker has what it takes to help consumers through the mortgage origination process. A famous quote in the real estate industry states ‘Underneath All is The Land.’ The frequently changing ownership of this land often requires financing. Mortgage brokers are experts who assist borrowers in finding and negotiating the financing to fit their specific criteria and situation. The mortgage broker license indicates that the broker has met the national educational requirements and can be trusted with confidential information and can give clear indications of the best options available. The NMLS was established to improve supervision of the mortgage industry, increase communication across states, enhance consistency in licensing requirements, automate processes to the greatest degree possible and to improve protection of consumers seeking loans. Nationally, minimum requirements for compliance and registry with the NMLS and for acquiring a mortgage broker license are 20 hours pre-licensing education and 8 hours annually in continuing education. Abacus Mortgage Training and Education offers courses that meet both of these requirements, as well as many state specific courses and “exam cram” preparatory classes. The uniqueness of each state’s mortgage licensing laws is expressed in the diversity of the laws, rules, and regulations adopted by each state. The states differ on whether a mortgage broker even needs a mortgage broker license, whether the mortgage broker can loan on both 1st and 2nd mortgages, or whether a physical office in the state is required. As Internet business transactions increase, the mortgage broker licensing laws are becoming more lenient on the requirement for an in-state physical office. States also differ on how much CE they require for mortgage brokers. Several mortgage licensing laws also pertain to the employees of mortgage brokers, and whether they, too, need a mortgage license. By obtaining a Mortgage Broker License, an individual can provide hundreds of different creative options for a consumer to use in financing a property. The consumer benefits because the mortgage broker is not an employee of a particular bank or lender but instead has a working relationship with dozens of these institutions. Begin your career on the right foot by taking the mortgage broker license preparation courses offered by Abacus Mortgage Training and Education.
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