Pennsylvania Mortgage Education And Exams
In Pennsylvania, passing an exam is obligatory for some license types. To obtain a Mortgage Broker, Lender or Loan Correspondent license, at least one company officer must complete a course and pass a test . All Mortgage Originator license applicants are required to complete an education course and pass an examination.
How To Be A Mortgage Broker Plus Advantages Of A Career In The Mortgage World
Of course, snagging a comfy salary isnt everything . Is brokering loans rewarding or even fun?
Shayna Rabaiotti, an Arizona mortgage loan officer with Guardian Mortgage, has this to say about it: Its such an amazing feeling when I get to see my clients reactions after they get their keys to their new home.
Rabaiotti also notes that mortgage loan brokering is a good transition career.
After being in the customer service and sales industry for over 15 years, I find that I really enjoy helping people, which is why I was so drawn to this, she says.
Here are the basic steps you need to take to become a licensed broker:
Exams For Company Licenses
- Mortgage Broker, Mortgage Lender and Mortgage Loan Correspondent Licenses – To obtain any of these company licenses at least one officer, assigned to the principal place of business and listed as a direct owner or executive officer, must complete a pre-licensure course and pass a test.The education course should be NMLS-approved and be at least 20 hours long. The course must include 3 hours of Pennsylvania law. For further information, as well as a list of approved providers, please visit the NMLS Education page.
After completing the education course, applicants can enroll for the test and pay the applicable fees in NMLS. An exam date can be scheduled via NMLS profile or by contacting the exam administrator Prometric at 671-6657.
Additional information regarding test enrollment and preparation can be found on the NMLS testing page.
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What Skills Does A Mortgage Broker Need
Not only do mortgage brokers need to know the lending process, lending rates and lending institutions, but they also have to have a variety of hard and soft skills to help them perform their job successfully. Here are some skills a mortgage broker needs:
Attention to detail
Mortgage brokers usually have strong attention to detail. This can help them when reviewing loan options, rates and terms. The better they read the fine print, the easier it can be for them to present their clients with profitable mortgage opportunities.
Interpersonal skills
Most mortgage brokers have friendly and outgoing personalities that allow them to effectively communicate with clients and financial institutions. Having good social skills can make it easier to get along with everyone you work with and might make your job more enjoyable. To develop your interpersonal skills, consider being an active listener and practicing ways to speak positively and professionally to others.
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Patience
Mortgage brokers can also benefit from having enough patience to find lenders who are willing to work with their prospective borrowers. Patience can also help them accommodate their client’s various schedules and be willing to wait for them to make a decision about their loan options. Having patience can also help a mortgage broker remain positive when they receive rejections from lenders.
Negotiation skills
Organizational skills
What Can Pennsylvania Mortgage Brokers Do To Avoid Claims Against Their Bond
To avoid claims on their bond, mortgage brokers in Pennsylvania must ensure that they follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
- Pay all required taxes and fees
- Provide all services that have been paid for
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Pass The National Mortgage License System Test
Once you complete the pre-licensure course, pass the NMLS exam. Known as the SAFE Mortgage Loan Originator Test, this exam test your knowledge of things like mortgage practices and state guidelines and regulations. You can pass both the state and federal parts of the exam with a score of at least 75%. Then, you can renew your license each year by passing background and credit checks. Some states have additional requirements, so research your state’s regulations before applying for renewal.
Mortgage Broker Vs Loan Officer
A mortgage broker is a person who brings mortgage borrowers and mortgage lenders together, while a loan officer is someone who works for a bank and offers loans, including mortgages.
A mortgage broker is someone independent of banks, credit unions, and other mortgage lenders. They aim to be the intermediary between a client and a financial institution that offers mortgages. When a mortgage broker successfully makes a deal, they may make the commission from the client as well as the banking institution.
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Evan Wade President & Ceo Epoch Lending
Co-Founder & Partner, Philadelphia Mortgage Brokers
The consultants are amazing! They provide the level of detail and commitment we are looking for in a compliance partner. Being a newer brokerage, we have plenty of questions, and they are quick to respond with a helpful answer. Real Time Compliance has been great for me and my partner!
How Much Will This Bond Cost
The premium that you pay for a Pennsylvania Mortgage Lender Surety & Fidelity Bond is based on credit and the bond amount required. Premiums start at .75% of the bond amount with good credit. Bond amounts over $50,000 will require personal and business financial statements for underwriting purposes.
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Mortgage Broker Vs Lender
A mortgage broker is a professional who brings mortgage borrowers and mortgage lenders together, while a lender is a bank or other financial institution that gives out loans.
A mortgage broker is someone independent of banks, credit unions, and other mortgage lenders. They are the intermediary between a client and a financial institution that offers mortgages. When a mortgage broker successfully makes a deal, they may make a commission from the client as well as the banking institution.
How To Get Your Mortgage License In Pennsylvania
In almost all cases, Mortgage Loan Originator Candidates require 20 hours of training. Each state then, has the option to require a certain amount of that training to be state specific. More on that break down later. In the meantime though, you can view your states specific training requirements here and keep them available for reference.
Once you verify your state specific course, its easy to get going. These simplified steps will help you determine the best way to get your mortgage loan originator or loan officer license.
*Please note, that this is a general overview of requirements and that they may not reflect the most recent information. Your specific circumstances may require a different process as well. Please always verify requirements with the appropriate agencies.
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How To Become A Mortgage Broker: 7 Steps
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed’s data and insights to deliver useful tips to help guide your career journey.
A mortgage broker is a professional in real estate who facilitates mortgage agreements between lenders and borrowers. Understanding what the role entails and its specific requirements can help you pursue this profession with greater ease. If you have highly developed math skills and enjoy communicating with others, you might thrive as a mortgage broker.
In this article, we explain how to become a mortgage broker and share some other aspects of the career, such as their main job duties and average salary, then answer frequently asked questions regarding this profession.
Get A Mortgage Broker License
Requirements to get your mortgage license vary by state. Application fees usually range between $1,000 and $2,000. To qualify for a license you will need to take the following steps:
- Provide your financial statements.
- Show evidence of completing the pre-licensing coursework.
- Provide SAFE test results.
| Montana Mortgage Broker Bond | $25,000 |
Go to NMLS select your state and complete the surety bond form. Sign your bond certificate and send it to the state with your license application. After a reviewal process, you will receive your license. Once this is complete, you will officially be a licensed mortgage broker and have now become a mortgage broker.
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What Other Insurance Products Can Agents Offer Mortgage Brokers In Pennsylvania
Pennsylvania does not require mortgage brokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How To Obtain A Pennsylvania Mortgage Broker Bond
At Surety1.com we make it easy to obtain your surety bond, with easy our 3 step process:
After completing these steps, your surety bond will be shipped to you for signature. Once the bond is signed, it should be uploaded into the NMLS upload portal.1 The name on the bond application must match exactly the Full Legal Business Name of application for the mortgage broker license.2- Occasionally, additional underwriting information is requested by the surety before surety1.com can provide a quote. Surety1 represents over a dozen surety companies to provide competitive terms and pricing for the surety bond.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
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How Do I Become A Mortgage Broker
To become a mortgage broker, you first need a high school diploma or GED. Then, you need to complete pre-licensing training through the National Mortgage Licensing System . This is a 20-hour class that offers education on federal and state laws pertaining to mortgage brokerage. Earning a bachelor’s degree in accounting or business management can further assist in your journey of becoming a mortgage broker. Either of these degree programs will provide a strong foundation in business ethics, sales, taxation, management, and more. Next, you must take and pass the NMLS licensing exam. You must achieve a 75% on both the state and federal portions of the exam to pass. Upon passing your exam, you’ll need to register and establish your mortgage brokerage as a legal business. This process involves abiding by your state’s guidelines and requirements for business registration.
How Long Does It Take To Be A Mortgage Broker
It first depends on if you chose to get a higher education, and which degree you choose. While an associates or bachelors degree is not necessary for the industry, it is helpful. After getting a two or four-year degree, it could take around 45 days to complete the classes and get licensed. This could vary between states, however, as each has its own set of requirements.
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Pursue Continued Education And Training
Even after earning your degree and license, you are not done learning. To be a successful mortgage broker, you must continue your education and training. You can do so by taking courses that educate and improve your knowledge of the industry. Courses can also help you understand federal and state laws and regulations. The table below provides more details on the continued education requirements by state.
Exams For Individual Licenses
- Mortgage Originator License – To obtain an individual mortgage license, applicants are required to complete an NMLS-approved pre-licensure education course of at least 20 hours. The course must include 3 hours of Pennsylvania law. For additional information, as well as a list of approved providers, you may visit the NMLS Education page.Upon completion of the education course, you can enroll for the test and pay the fee on NMLS. You can schedule an exam date via your NMLS profile or by contacting the exam administrator Prometric at 671-6657.
Additional information on how to schedule and take the Mortgage Loan Originator test can be found on the NMLS testing page.
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How Is A Mortgage Broker Different From A Real Estate Agent Or Loan Officer
While mortgage brokers and real estate agents have a few similarities, they also have different job duties. A mortgage broker helps buyers find the financing they need to buy a property, whereas real estate agents help buyers and sellers find or sell real estate property.
While a mortgage broker may also seem similar to , these roles also function differently. Loan officers only offer mortgage options from the financial institution they work for, whereas mortgage brokers match their clients with different mortgage lenders.
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Network And Build Relationships
Networking is crucial to building your cliental and becoming a successful mortgage broker. Real estate agents and mortgage brokers frequently work together to ensure that transactions on homes run smoothly. You can often find them in the same office together. Networking with real estate agents is useful as they are often asked to recommend mortgage brokers to their clients. Build a good relationship and you could be who they recommend.
Mortgage brokers can work independently, but when starting in the industry, it is generally better to work in a firm before becoming self-employed. Mortgage brokers usually work at a mortgage broker firm or another lending institution. Networking with real estate agents, lending institutions, banks, and others is important for mortgage brokers to build their reputation and cliental base. Working in a firm allows more opportunities to network and build a cliental base. This is why starting at a firm is recommended.
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Pennsylvania Mortgage Broker License Guide
In Pennsylvania, anyone engaged in the mortgage loan business, whether an entity or individual, must obtain a license at the state level. The mortgage licenses are regulated and issued by Pennsylvania Department of Banking and Securities.
The mortgage license application process is handled by the Nationwide Mortgage Licensing System . NMLS allows mortgage companies and loan originators to apply, update or renew a license online.
What Is The Job Outlook For A Mortgage Broker
The U.S. Bureau of Labor Statistics reports an employment growth of 4% for real estate brokers and sales agents from 2020 to 2030. The BLS notes that demand for this profession can increase due to the number of people needing brokers and sales agents when they look for a home. More positions can also open as current professionals in these roles retire or change careers.
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Becoming A Successful Mortgage Broker:
A mortgage broker is a contractor who analyzes mortgage loan products and counsels customers on loan availability, qualification requirements, interest rates, and terms, explains finance writer Kristine Tucker. A mortgage broker doesnt actually loan any money, and only serves as an intermediary between the lender and the borrower.
Mortgage Licensing In Pennsylvania
In Pennsylvania, anyone engaged in the mortgage loan business, whether an entity or individual, must obtain a license at the state level. The mortgage licenses are regulated and issued by Pennsylvania Department of Banking and Securities.
The mortgage license application process is handled by the Nationwide Mortgage Licensing System . NMLS allows mortgage companies and loan originators to apply, update or renew a license online.
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Create Your Nmls Account
You can get started with this step right now! By starting an NMLS account, you will be assigned an NMLS Unique Identifier which will be your license number for the rest of your mortgage career. You will need this number before you take any education or do business. Coordinate your account creation with your future employer.
How To Become An Independent Mortgage Broker
wikiHow is a wiki, similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, volunteer authors worked to edit and improve it over time.There are 7 references cited in this article, which can be found at the bottom of the page.wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 92% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 130,532 times.Learn more…
A mortgage broker helps potential home owners with the financial side of things. A broker communicates with lending institutions and assists individuals with their real estate purchases, acting as the middleman between lenders and buyers.XResearch source Becoming an independent mortgage broker, where you work for yourself and one on one with clients rather than through a mortgage brokering firm, can lead to a sustainable career. But you will need to get your mortgage broker license and use certain tactics to find clients and retain them.
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Choose A Mortgage License Type
There are different license types that you can apply for, depending on your exact activities:
- Mortgage Broker License negotiating and arranging first and secondary loans
- Mortgage Lender License originating and closing first and secondary loans with own funds
- Mortgage Loan Correspondent License originating and closing loans with wholesale table funders or other
- Mortgage Originator License working with loan applications and negotiating loan terms
You can find the full list of license types on the NMLS website.
