October 1st, 2012 5:34 PM by Gregg Mower
It has become harder and harder to enter the field of Mortgage Lending. With this being said the level education now needed to enter this field has increased tremendously over the last several years. You will need to get a National Mortgage Licensing System (NMLS) license in order to enter first of all. In some cases you would be required to also have the California Department of Real Estate (DRE) License depending on who you want to go to work for. Most mortgage Bankers now days are licensed under the Department of Corporations under the Residential Mortgage Lending act that allows them to hire Loan officers without having the additional DRE license. On the other hand most Mortgage Brokers in California are required to have both the DRE and the NMLS license, some say holing the originator to a higher standard with more education requirements. To the consumer they really don’t care the difference between the two, they generally just care about who has the lowest rates and fees. Ironically, it is becoming more obvious that the Mortgage Broker is able to provide lower rates and fees due to the lower overhead they carry compared to a Mortgage Banker or a Bank. I was having a conversation with a Wells Fargo Loan officer the other day and he was explaining that the average processing time for a loan in his branch is 75 days with and average interest rate in the 4’s where we as Brokers are routinely closing in 30 days or less and our rates are in the low 3’s currently.
So when you make the decision to go into the lending industry you should ask yourself what type of institution you should study to go into. To get your Real Estate License you will have to have some basic pre-education requirements before you can take the test to get the license. You will need to hook up with a school that can go over your existing education and see what can be used for the pre-requisite classes for the DRE. Schools to get your DRE license will run between $200- $1,000 depending on the amount of schooling you currently you have. Then once you pass your DRE test you have to pay for the license and that is $300 currently. The time it will take to get this license will depend on how much education you currently have and how fast you are with your studies. Now that you have your DRE license or even at the same time you can be studying for the NMLS license, as much of the information is repeated in the DRE studies. The NMLS will require you take a 20 hour prep course before you can take the exams. When I say exams the NMLS is just that, 2 different exams, one for the State and one for the Federal Government and you can’t take them both on the same day. The cost for the NMLS license is the cost of the school (usually taken online) and runs between $150 and $500 depending on where you go and the license itself will cost $300.
So you can see you should be very serious about getting into the industry before you go and put out the money and time. Once you have put out the time and money for the licensing you will need to be trained in the industry and there are not many folks doing training for new Loan officers. However, if you do choose to make this industry your career it can be very satisfying both in the fact that you get to help folks get into homes or lower their monthly mortgage payments but you also will make a good living. If you would like to find out more about MAE Capital Mortgage Inc’s Training program click the jobs button on the left, our training program is second to none.