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How do I become a mortgage loan originator?
To be licensed as a State-licensed loan originator, you must meet the minimum standards federal law sets. Among them are at least 20 hours of approved education and a written test passed with at least 75 percent correct answers. Your State issues the license, so check its rules too.
By State Cert GuideChecked against the sources listed below.
The steps, in order
Take an approved course
The registry approves the courses
Pass the written test
A qualified test, scored by percent correct
Clear the background check
Fingerprints and criminal history
Apply to your State
The State issues the license
Decision steps: take an approved course, pass the written test, clear the criminal history background check, then apply to your State for the license.
What the rule says
What does federal law require for a State license?
You have never had a loan originator license revoked anywhere. You have no felony conviction inside the law's time limits. You show the financial responsibility, character and general fitness the law asks for. You finish the pre-licensing education and pass the written test. You also meet a net worth or surety bond requirement, or pay into a State fund, as your State requires.
www.law.cornell.edu · checked Nov 13, 2026 (opens agency website)
How much education do I need?
At least 20 hours of approved education.
www.law.cornell.edu · checked Nov 13, 2026 (opens agency website)
What must those hours cover?
At least 3 hours of federal law and regulations, 3 hours of ethics, and 2 hours of training related to lending standards for the nontraditional mortgage product marketplace. The ethics hours include instruction on fraud and fair lending issues, among other topics.
www.law.cornell.edu · checked Nov 13, 2026 (opens agency website)
Who approves a course?
The Nationwide Mortgage Licensing System and Registry reviews and approves the courses.
www.law.cornell.edu · checked Nov 13, 2026 (opens agency website)
What score passes the test?
Not less than 75 percent correct answers to questions.
www.law.cornell.edu · checked Nov 13, 2026 (opens agency website)
Where people go wrong
- You take a course that the registry has not approved. The law says the registry approves the courses.
- You add up hours but skip required topics. The law sets a minimum number of hours for each topic, not only a total.
Questions
What if I fail the test?
You may retake it 3 consecutive times, each at least 30 days after the preceding test. After failing 3 consecutive tests, you must wait at least 6 months before taking it again.
What does the test have to measure?
The law lists ethics and federal law and regulation on mortgage origination among the subject areas.
Does a felony conviction rule me out?
It can. You must not have been convicted of, or pled guilty or nolo contendere to, a felony in the 7 years before you apply. If the felony involved fraud, dishonesty, a breach of trust or money laundering, the bar applies at any time before the application.
What does the background check involve?
When you apply to a State, you furnish fingerprints to the registry. They go to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive them, for a State and national criminal history background check.
Your next step
Read the federal statute, then ask your State's licensing agency what it adds.
Sources we read
- www.law.cornell.edu › 5104 · read Nov 13, 2026
Who publishes this guide
State Cert Guide is an independent guide to what each state requires. If a fact on this page is wrong, tell us and we fix it.