How Do You Obtain A Mortgage Broker's License?

How do you obtain a mortgage broker's license? Mortgage broker licenses are traditionally administered by state lending agencies and the requirements vary by state. You may wonder how knowledgeable someone...

You may wonder how knowledgeable someone trying to help you obtain a loan has to be by law. Or perhaps you are considering a career in banking. How one obtains a mortgage broker's license?

"Mortgage broker's licenses are traditionally administered by state lending agencies, and the requirements vary by state," says Doug Perry, who as worked in the Consumer Markets Division of Countrywide Home Loans for 16 years. "In some states there is not a license required, and in other states there is not only a testing procedure required, but there might also be a bonding process to go through. It really varies by state. Most states are going towards licensing procedures that that do require a base level of testing and some reassurance that the individual is reputable in nature."

If you want to find out what the licensing requirements are in your state you can check at It might pay to learn more about the professionals who want to help you buy a home and how knowledgeable they are required to be by law. After all, the application process can seem like a maze to a home borrower, and it helps if you trust those you are doing business with.

The laws vary in more ways than just whether a broker needs a license in a certain state or not. They may vary as to whether a broker can provide a loan for both a first and a second mortgage and even whether or not a broker must by law have a business office.

Laws are becoming more lenient as to whether an office is required or not. That is because of the Internet.

The laws also vary from state to state as to how much education a broker must have.

The National Association of Mortgage Brokers (NAMB) was formed in 1973. NAMB provides professional certification to assist mortgage brokers with their licensing. The organization also provides continuing education courses. Some states require the courses before a broker can obtain a license. Those taking the courses learn the most cost effective ways of obtaining financing for a consumer. Only four states are not members of NAMB.

A knowledgeable mortgage broker can provide literally hundreds of options to a potential homebuyer. Brokers are not employees of a particular bank or institution. They work with dozens of those institutions.

On the website, you can click on a link to find out requirements for any or all of the 50 states. Laws and requirements do change, but the information is as up-to-date as possible. Links are also provided to each state's mortgage licensing office and the state's NAMB office.

There are many things a mortgage broker must know, so it is no wonder there is an agency to help those preparing to become a broker prepare for their careers. Brokers must know the different types of loans rates available, whether the rates are fixed or adjustable, the types of loans available, including government loans such as FHA or VA, information about loans for those with bad credit, about interest only loans, reverse mortgages, mortgage insurance, and many other topics.

There are countless things a mortgage broker must know. Knowing how a mortgage broker is licensed might help you have more confidence in the person assisting you in buying a home.

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