Mortgage and Loan Education

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Loan Officer Licenses

Written by Dana Hinders
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Loan officers who work in banks or credit unions have no specific licensing requirements, but licensing requirements for loan officers who work in mortgage banks or brokerages vary by state. Criminal background checks, continuing education courses, and work experience requirements are some of the possible conditions for obtaining a state loan officer license. Most loan officer licenses must be renewed on a yearly basis.

Special Licensing Issues for Loan Officers

Regulation of internet-based mortgage brokers and loan officers is a complicated issue because of the blurred geographical boundaries. Some states require that internet-based mortgage brokers and loan officers be licensed if they wish to conduct business in their state. For example, Texas requires that web-based mortgage brokers and loan officers be licensed and maintain a physical office in the state of Texas if they wish to solicit business from Texas residents.

Licensing requirements for loan offices who work out of a home office depend on whether they are business owners or independent contractors. Loan officers who work from home under a telecommuting arrangement with a mortgage brokerage or other financial institution are typically covered under their employer's license. Loan officers who own their own home-based business act as both a mortgage broker and mortgage loan officer and may be required to have more than one type of license.

Mortgage loan officers who move to a different state must abide by that state's licensing requirements. State loan officer licenses are generally not transferable. When applying for a new license, the regulating agency is allowed to check if you are in good standing with the other states in which you are licensed to practice. While some states don't charge for obtaining a loan officer license, other states have fees of up to $150.

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