Education

• The federal SAFE Act requires every mortgage broker license applicant to complete at least 20 hours of pre-license education. States are able to increase the number of hours they require for a license in their state. The minimum number of hours they must require is 20, but some states require more than 20. This education must include federal law, state laws, fair lending and nontraditional mortgage programs. Applicants must complete their education through a Nationwide Mortgage Licensing System and Registry approved course provider.
  
  

Testing

• Once applicants complete their education they may schedule their federal and state licensing tests. The applicant must pass two tests when first obtaining a license. The first test is the federal mortgage license exam and the second is the state's specific mortgage license exam. The applicant must pass each exam with a minimum 75 percent score. The applicant must also pay for the exam fees, which vary from state to state.
  
  

Background

• In addition to the education and testing, the applicant must submit to a background check. The applicant obtains copies of her fingerprints and submits them to the NMLS. The NMLS forwards them on to the FBI for criminal background check. In addition, the applicant allows the NMLS to pull the applicant's credit report for review. The SAFE Act requires the applicant not have any felony convictions for fraud, dishonesty or other financial crimes to qualify for a license. In addition, the safe act requires the applicant demonstrate a history of financial responsibility.
  
  

Multiple States

• Once the applicant meets all of the federal and state requirements, he receives a mortgage license. Some mortgage loan officers want to originate loans in multiple states. The license is only valid in the state which it was received, however applicants may obtain multiple licenses. The applicant does not have to retest on the federal level, but does have to take the state specific test. If the applicant received the initial license in a state which only require 20 hours of education and wants a license in a state that requires 24 hours of education, the applicant will have to complete the additional education prior to testing.