How to become a Mortgage Agent or Broker?

Mortgage business is a big industry and people purchase real estate all the time. It makes every sense to get yourself licensed if you can close 2 -3 mortgage transactions annually and for every business nature is, once you accumulated enough customer base and experience, it will auto run. We highly encourage people to get their own mortgage license and join our team. We are short of good agents and we’d like to have you in our team.

Mortgage Agent (MLO, Mortgage Loan Originator)  licensed is issued and managed by NMLS (National Mortgage Licensing System).The licensee must work under licensed brokerage and supervised by licensed mortgage broker. This license will be suitable for people like to focus on sales and normally good at working with people.

Mortgage Broker License allows licensee to independent operated a mortgage firm and recruit team but has more requirements than MLO license. This will be good for people who would like to be a team leader and take more responsibility for operation, staff and people management. Many mortgage broker licensee also choose to be associated broker to avoid handling the operation etc.

It’s not easy to maintain a MLO or Mortgage broker license since it’s consumer credit related and will need to be annually renewed.

In California, company normally licensed as both real estate and mortgage broker to be able to do both side transactions. So MLO also regulated by CA BRE. Click here for more info and FAQs.

As Mortgage Agent

You need to:

  • Be a CA licensed Real Estate agent and get sponsored by a licensed real estate and mortgage company
  • Finish required pre-licensing education.
  • Pass the federal and state mortgage test
  • Submit application and fees.
  • Pass credit, financial and background check

Annual License Requirement

As Independent Mortgage Broker

You need to:

  • Satisfy CA BRE requirement for broker and has a commercial business address
  • Finish required pre-licensing education.
  • Pass the federal and state mortgage broker test
  • Submit Company application , Broker Application and pay fees for both Company and individual.
  • Recruit staff for accounting, auditing and operation etc.
  • Recruit team since if there is no team, there will be no means to be as a independent broker with extra cost and more responsibility.  Also it’s very hard for a mortgage broker to approved by lenders without enough volume and good history. Without good lenders, it’s hard to keep in competition.
  • Sign up lenders, the more the better lender approved, the stronger the company.

Annual License Requirement

Quarterly Operation Requirement

  • Quarterly Mortgage call reports (All inclusive Statistic report for all mortgage transaction include application, declined, closed, cancelled, purchase, refinance, cash out, 2nd mortgage or any other mortgage type).
  • Quarterly financial statements (Company Profit and Loss, balance sheet etc.)