Steps To Get Your Mortgage Broker License | Part 1 of 3

Introduction

In this video, Megan discusses the steps and information required to apply for the first license, the individual NMLS license. She also explains the three different licensing types that one needs to be aware of.

Three Different Licensing Types

• There are three different licensing types: MU1 form (company license), MU2 (individual LO license), and MU3 (branch license).

• The individual NMLS MU2 is a requirement for every company. It enables a loan officer to originate mortgages for customers.

• The company NMLS MU1 is assigned to your company when you're opening your own business, such as an independent mortgage brokerage.

• The branch NMLS number and license depend on the state. Some states require that every physical location a company has must also go through the process of applying and obtaining a branch NMLS number.

Individual NMLS License Process and Requirements

Megan shares some facts about NMLS and explains the process and requirements for obtaining an individual NMLS license.

Facts About NMLS

• NMLS stands for Nationwide Multi-State Licensing System and Registry.

• The purpose of NMLS is to provide a centralized system for companies and individuals in the mortgage industry to apply for, maintain, manage, and renew licenses.

Process and Requirements

• To obtain an individual NMLS number, you need to take the required pre-licensing 20-hour course and pass the exam.

• After passing the exam, you need to find a licensed company to sponsor you. You can't originate loans until you're sponsored by a licensed company.

• If you want to own a mortgage company, it's recommended that you get the NMLS individual license yourself and also get all of your other people licensed.

• The main person with the NMLS individual license is called the qualifying individual. If someone else has the license and they decide to leave your organization, your company shuts down when that person walks out the door.

Conclusion

Megan concludes by reminding viewers that this video is part one of a three-part series that will help anyone who's trying to apply for their individual, company, or branch licenses.

Final Thoughts

• This video covered the steps and information required to apply for an individual NMLS license.

• In the next video in this series, Megan will discuss how to obtain a company NMLS MU1 license.

Steps to Getting a Mortgage License

This section covers the steps required to obtain a mortgage license, including creating an NMLS account, taking the 20-hour pre-licensing course, passing the exam, and submitting your license application.

Creating an NMLS Account

• To create an NMLS account, go to nationwide licensingsystem.org and select "Request an Account" in the upper right corner.

• After filling out your information, complete an attestation and sign up for the non-refundable NMLS test.

• Keep watching your emails as you have 180 days to pay and enroll.

Taking the 20-Hour Pre-Licensing Course

• Register with an approved vendor such as Learn Mortgage or Course Learning.

• Take the course and study thoroughly before scheduling your exam.

Passing the Exam

• Schedule your exam as soon as possible after completing your 20-hour course.

• The exam has 125 questions covering mortgage knowledge, ethics, state laws, and federal laws. You must score at least 75% to pass.

• Use vendors like CopyCram to help you study effectively.

Submitting Your License Application

• Submit your application with required items such as certificates of completion for pre-license education and exams, form MU2, background check fingerprints, credit report, and letters of explanation if necessary.

Additional Information on Individual Licensing

This section provides additional information on individual licensing requirements such as timeline variations and getting hired after obtaining a license.

Timeline Variations

• The time it takes to obtain a license can vary from five weeks to over a year.

• There is a retake policy for the exam, and you have 190 minutes to complete it.

Getting Hired

• If you're looking to create your own business, skip this step. Otherwise, getting hired after obtaining a license is possible by working at a brokerage or lender.

NMLS Requirements

This section covers the requirements for taking the NMLS test.

Government-Issued ID Required

• A government-issued ID is required to take the NMLS test.

• Acceptable forms of ID include a passport, military ID, police ID, or alien registration card.

• Your name on your NMLS account must match what's on your ID.

Support Phone Number

• If you have questions about the NMLS test, there is a support phone number available.

• The phone number is 855-665-7123.

Hidden Study Guide and Free Gift

This section covers additional resources available for studying for the NMLS test.

Hidden Study Guide

• There is a hidden study guide on the NMLS website that the exam is based off of.

• You can access this study guide to help prepare for the exam.

Free Gift and Additional Videos

• By clicking on a link in the video description labeled "Free Gift," you can receive a copy of individual licensing instructions as well as access to two additional videos.

• These videos cover steps for getting a company license and opening your own mortgage brokerage, as well as branch licensing steps if needed.

Conclusion and Next Steps

This section concludes the video and provides information about upcoming content.

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Filing for Company NMLS License

• The next video in the series will cover filing for a company NMLS license.