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Whether you’re looking to launch a new career or renew your NMLS license before the end of the year, we’re here to help. In this article, we’ll give you some background, show you how to get your NMLS license, introduce our favorite NMLS licensing and CE schools, and set you on the path toward licensure or a quick renewal. Let’s get to it!
Starting a career as a MLO can be lucrative if you’ve got the skills to consistently deliver value to your clients. For the average homebuyer, taking out a mortgage is stressful. With so many hurdles to clear, getting through the process unscathed requires the assistance of a licensed professional. That’s where a mortgage loan officer (MLO) comes in.
Mortgage loan officers, also known as mortgage loan originators or lending officers, generally make salary-based income with commission. They have flexible work hours and can work independently or with a bank or mortgage broker. While that may sound promising, it won’t come without hard work or an NMLS license. In fact, you won’t even get in the door without one. Let’s walk through the process of getting or renewing your MLO license.
Summary
Best NMLS prelicensing & CE schools for 2024
| Best for renewals |
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MLO Force |
Specializes in CE courses created for MLOs, by MLOs. Completing your CE is as easy as tuning into your favorite podcast. |
| Ideal for quick, convenient license renewal. Lets you purchase state & federal CE courses separately for lower prices & high quality. |
| $17.50 to $149 |
| Visit MLO Force |
| Upgrade Pick |
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OnCourse Learning |
Comprehensive prelicensing and CE courses for all 50 states, available in multiple formats |
Prelicensing packages incl. 20-hour SAFE course. Exam prep w/ top-tier bundles. State-specific courses a la carte & CE also available. |
| $329 to $599 |
| Visit OnCourse Learning |
| Budget Pick |
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The CE Shop |
Comprehensive prelicensing courses for all 50 states, plus CE courses |
Prelicensing packages incl. 20-hour SAFE course. Exam prep + e-textbook w/ some packages. State-specific courses a la carte. Lets you bundle PE & CE courses for cost savings. |
| $365 to $589 |
| Visit The CE Shop |
| Study Tools Pick |
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OnlineEd |
Comprehensive prelicensing courses for all 50 states, plus CE courses |
Interactive online courses that include flashcards, study sheets & an exam simulator. Some packages also include test-taking strategy videos. |
| $279 to $315 |
| Visit OnlineEd |
What is an NMLS license?
In 2010, the Federal Housing Financing Agency (FHFA) mandated that Fannie Mae and Freddie Mac include identifiers for loan originators or loan origination companies as a way to regulate and monitor mortgage transactions — while also ensuring originators were well qualified to handle transactions. That’s when the Nationwide Multistate Licensing System, or NMLS, arrived on the scene.
Now, NMLS is a national licensing system for state-licensed mortgage companies and MLOs. To clarify, your MLO license isn’t issued by the NMLS. The system issues you an ID number and a profile once you prove you’ve passed an MLO exam. Why is this important? Well, as a new or aspiring MLO, your NMLS license is absolutely critical for qualifying to handle lending transactions, and no one will hire you without one.
Once you complete the step-by-step process we’ve outlined below, you can then register with the NMLS online. You’ll receive an ID and registration number. Your NMLS number functions similarly to a social security number, solidifying your status as an MLO to the government and allowing it to track your professional activity.
Customers may also look up your license info via NMLSConsumerAccess.org to ensure you’re legit before doing business with you.
Many agents include their NMLS number on their business cards, websites and other branding tools, kind of like this ConneXus Credit Union card below:
How hard is it to get your NMLS license?
Getting your NMLS license is no walk in the park — especially if you’re new to the mortgage industry. Before you sit an exam, you’ll need to work through 20 hours of prelicensing education, which can be difficult if you work full-time outside of class.
Following that, you’ll need to pass the SAFE MLO exam — and only 55% to 60% of test takers pass on the first try. This may seem challenging but you can definitely pass the exam and get your license if you study diligently.
NMLS license costs
Your NMLS license is a must-have if you want to work as a certified MLO. However, NMLS licensing costs aren’t cheap, and you could end up paying a lot over time between prelicensing courses and processing fees. But, you can’t run from these expenses, so it’s best to face them head on. Let’s run through the costs before you start your journey.
Prelicensing courses ($200 to $750)
Before you take the licensing exam or register with the NMLS, you’ll need to pick a prelicensing course from an NMLS-approved school to get the ball rolling. Of course, this could be pricey, depending on your chosen provider and how you take the course (more details below).
In general, prelicensing courses cost between $230 to $719, depending on your state and the type of course you choose. Some courses may include prep exams and other study tools that other courses don’t. For example, a prelicensing course in Oklahoma costs $257, while a similar course in California costs $219.
Keep in mind that the number of required course hours, which is unique to each state, can impact the cost of an NMLS licensing course.
Processing & registration fees
This helpful chart outlines other NMLS costs after you pass the prelicensing course exam:
| Entity | Set-up costs | Processing costs |
|---|---|---|
| Company | $100 | $100 |
| Branch | $20 | $20 |
| Individual | $30 | $30 |
Here’s a cost breakdown for some of the processing, registration and background check costs involved in getting your NMLS license. We’ve outlined examples from some of the more populous states, but these costs are state-specific and will vary based on where you live.
California
- Processing fee: $30
- Credit report fee: $15
- FBI Background check: $36
- Fingerprints fee: $39
- Renewal fee: $300
Texas
- Processing fee: $100
- Credit report: $15
- Registration fee: $190
- FBI Background check: $36
New York
- Processing fee: $379, including $125 investigation fee and $254 license fee
- Credit report: $15
- FBI Background check: $36
- Fingerprint fee: $99
Florida
- Processing fee: $30
- Application fee: $195
- Mortgage guarantee trust fund fee: $20
- FBI Background check: $36
- State Background check: $24
How to get an NMLS License (in 4 steps)
So, now you know what an NMLS is and some of the expenses associated with getting your NMLS license. But, how do you actually get the license? Let’s walk through step-by-step guide for getting your NMLS license. You’ll be in business in no time if you focus on these five simple steps:
Step 1: Review your state’s eligibility requirements
Most states will have a few things in common when it comes to prelicensing requirements. For example, all states will require no less than 20 hours of coursework before you can get your license and NMLS number.
Start your NMLS license search by getting to know your state’s NMLS requirements before considering a prelicensing course. There’s no sense in committing time and money toward a prelicensing course if you don’t meet the eligibility requirements. But remember, no two states are alike, and each will have its own unique requirements for getting your NMLS license.
For example, Arizona requires an extra four-hour, state-specific course while New York only requires an additional three-hour state-specific course. This may seem like a small difference, but it’s important to keep these things in mind when pursuing your license. If you’re looking for specific prelicensing requirements, look no further than your state’s .gov page for info.
Step 2: Complete a prelicensing course in your state
Now that you’ve done your research like the scholar you are, it’s time to head back to school and knock out your prelicensing coursework. Almost all states require at least 20 hours of coursework before you can get your license. Those hours cover different topics that will benefit you on the other side.
Here’s a general breakdown for your average prelicensing course:
- 3 hours of federal law
- 3 hours of ethics
- 2 hours of non-traditional mortgage lending
- 12 hours of elective coursework, which can vary based on your state
Also, check out this chart that details NMLS prelicensing and continuing education course hour requirements by state:
Notice how Nebraska, Nevada, North Carolina, Ohio, Texas, Utah and West Virginia all require more than 20 hours. Check out your state’s requirements at this link:
At the end of your course, you’ll take a prelicensing exam. Once you pass (and we know you will), go ahead and pat yourself on the back. But, don’t take too long. NMLS only opens the registration window for a short period of time once you complete your prelicensing work.
Step 3: Pass the SAFE MLO exam
Your prelicensing course should’ve taught you a lot about working as an MLO in your state. However, you’re not out of the classroom yet. According to the SAFE Mortgage Licensing Act of 2008, all aspiring mortgage loan officers have to pass the SAFE MLO exam to get a NMLS license.
The exam is designed to test your understanding of what you studied in class. The exam has a time limit of around three hours with 120 questions (115 scored and 5 unscored). It’s the only thing that stands between you and your new MLO license (and a new career!). Your questions will cover federal mortgage laws, general mortgage knowledge, MLO activities and more.
Programs like OnCourse Learning’s PrepxL (available with their Premier and Premier Plus packages) provide tools to help you pass your exam the first time. MLO Test Ready is a 10-day training program to help you prepare for the NMLS exam. With an 85% first-time NMLS exam pass rate, you’ll set yourself up for success with OnCourse Learning’s personalized study plans, practice exams, and more.
You’ll need a score of 75% to pass the NMLS exam. Sounds easy, right? It can be, if you prepare and study enough ahead of time. Keep in mind, only 58% of exam takers pass the NMLS exam on the first try, so it may not be a good idea to show up and wing it on test day.
Sample questions
Here are a few sample questions to give you an idea of what you’ll face on the NMLS exam:
A borrower has a front-end ratio of 28% and a back-end ratio of 36%. If the borrower’s monthly gross income is $5,000, what is the maximum allowable monthly mortgage payment (including taxes and insurance) according to the front-end ratio?
- $1,400
- $1,800
- $2,000
- $1,500
Which of the following is a requirement under the Real Estate Settlement Procedures Act (RESPA)?
- The lender must provide the borrower with a Good Faith Estimate (GFE) within three business days of receiving the loan application.
- The lender must notify the borrower of the credit decision within 30 days of receiving the loan application.
- The borrower must receive a copy of the appraisal report no later than one business day before the loan closing.
- The lender must ensure the borrower has homeowner’s insurance before closing the loan.
Where to find free MLO practice tests
Practice tests can give you an edge when you finally sit down and take the actual MLO exam. Fortunately, you can access free practice questions online and test your mettle prior to your MLO licensing exam. Here are a few free resources you can use to prepare for your practice exam:
- The CE Shop
- Mometrix Test Preparation
- Real Estate Institute
- SAFE MLO Exam
- ProProfs
- Quizlet
- Udemy
Step 4: Apply for your license through the NMLS
Congratulations! At this point, you’ve likely passed your state-mandated MLO exam. Now, you can register with the NMLS, receive your registration number and do business as a mortgage loan originator. Before that happens, there are a few more hoops you’ll need to jump through.
First, you or your employer will need to create an NMLS account for you. NMLS will send you a temporary password to set up and you can take it from there. You’ll need to knock out a long, detailed form designated as the MU4R form. You’ll need to provide identifying information including your name, social security number, date of birth, etc. The form will also ask for information about your past employment and details related to your work history.
Once your account goes live, this is what your dashboard will look like:
From here, you can monitor your license application and any outstanding items that you need to complete. The NMLS also lets you monitor invoices and license payments.
Step 5: Complete a background and credit check & pay fees
Now that the hard parts are out of your way, it’s time to bring it home with a background check, fee payments and a credit check. For starters, you won’t be able to fully set up your account without a criminal background check (CBC). You have to submit your CBC through the NMLS website and make it available to any and all relevant parties. From there, you’ll need to schedule and complete a fingerprint appointment to finish the security and ID portion of the registration process.
Once you finish your background check and ID verification, you’ll need to pay your fees. Lastly, you must allow the NMLS to perform a credit check and ensure your record is relatively clean. The NMLS does not require minimum credit scores, but it’s a good idea to keep your report clean and your score relatively high.
Renewing your NMLS license
The NMLS annual renewal period runs from November 1st through December 31st each year, for both institutions and individual mortgage loan originators. According to federal law, every lending institution is required to renew its registrations in the NMLS for 2025 by the end of the year.
Individual MLOs who were actively registered in the NMLS before July 1st of this year must also renew their registration through the NMLS during this window — which means you’ll need to complete your CE course requirements before doing so.
How often do you have to renew your NMLS license?
Most states require MLOs to renew their NMLS licenses every year between November 1 and December 31. You could simply renew your license on your own or have your company take care of it on your behalf. However, you will need to complete your required CE courses. Your registration will be marked as inactive until you re-register on the NMLS website.
How much does it cost to renew your NMLS license?
You’ll have to pay around $30 per year to renew your NMLS license. However, you’ll have to pay an additional $30 if you miss the December 31st renewal deadline. If you renew under your branch, a $20 fee will apply. An entire company will need to pay $100 to renew NMLS registrations for all MLOs. Generally, your employer will manage the process for your team.
HW Media, LLC has established an agreement with The CE Shop to promote online course information to consumers and real estate licensees. HW Media, LLC is not the developer of these courses and is simply providing a referral. Any questions regarding course content or technology should be directed to The CE Shop.
