What do I need for an Iowa mortgage loan originator license?

Step 1. Check whether you need the license. An individual may not act as a mortgage loan originator on a dwelling or residential real estate in Iowa without first getting a license and keeping it annually. The statute's definition of the term leaves out individuals engaged solely as loan processors or underwriters, but a loan processor or underwriter who is an independent contractor needs a license. It also leaves out individuals who only perform licensed real estate brokerage activities, unless a lender, a mortgage broker, or a mortgage loan originator or any agent of one compensates them. Two more groups are left out: individuals solely involved in timeshare credit, and servicer employees involved solely in loss mitigation.

Step 2. Pick a course the Registry approves. The statute names it the nationwide mortgage licensing system and registry. Use the NMLS course provider list. The Registry approves the course provider too.

Step 3. Take at least twenty hours. The statute says they include at a minimum three hours of federal laws and regulations, three of ethics and two on lending standards for the nontraditional mortgage product marketplace. Courses may be offered in a classroom, online, or by other means the Registry approves.

Step 4. Pass the written test. The statute says an applicant has not passed unless the applicant achieves a test score of not less than seventy-five percent correct answers.