-
Becoming a Mortgage Loan Originator
My son and nephews want to become an NMLS licensed mortgage loan originator. I know MLOs make seven figures if they are exceptional salespeople and during good bull mortgage and real estate markets. How is it like starting a career as a mortgage loan originator these days? I heard thousands of MLOs left the mortgage industry, and thousands of mortgage brokers and lenders either closed up shop, went out of business, or merged. Can you please give me a detailed comprehensive update of the mortgage industry and starting a career as a mortgage loan originator selling government, conventional, non-QM, and alternative financing mortgage loans?
-
1 Reply
-
Today’s market is not easy to navigate as a Mortgage Loan Originator (MLO), but plenty of rewards await you if you can find your way through it. The industry’s evolution has been remarkable, especially with the economic and regulatory changes experienced with the recent housing market downfall. Let’s look at the mortgage industry and everything you need to know regarding becoming an MLO.
Current State of the Mortgage Industry
Market Conditions:
- The mortgage industry has contracted with the high interest rates we are seeing.
- This has resulted in less refinancing and lower home sales.
- The average mortgage in 2025 is approximately 7%, which is very low for what people can afford.
Mortgage brokers and lenders have shut down, merged with competitors, or laid off most of their employees due to the new normal of low industry demand.
Regulatory Environment:
- The industry is known for being very litigious.
- Thus, MLOs must stay updated on compliance changes by The Consumer Financial Protection Bureau (CFPB).
- This is essential due to the increasing focus on compliance and consumer protection.
- The real estate sector is quite competitive, especially in an environment with low transaction numbers.
- Many seasoned players have exited the field, paving the way for new entrants with innovation and superior service offerings.
- The mortgage business has undergone substantial changes over the years.
- Most lenders are now embracing tech through portals to automate submission and approval, and mortgage professionals can harness the ease of technology here.
Social media and online platforms are tremendously powerful for mortgage loan originators who must market themselves and acquire new clients.
How to get started as a loan originator
Licensing criteria:
- To become an MLO, one must obtain a Nationwide Mortgage Licensing System (NMLS) license.
- This includes:
Completing a requirement of 20 hours of pre-licensing education covering the federal government’s laws, rules and regulations, ethics, and law of real estate originating business.
Clearing NMLS exam
applying with background and credit check
Specialization:
- Some MLOs specialize in conventional loans, which the federal government does not secure.
- Thus, they usually have much higher credit score requirements.
- Others focus on government loans like FHA, VA, and USDA, which many first-time buyers with low credit ratings use.
Non-QM and Alternative Financing:
- These products are more lax regarding who they give funding to, such as the self-employed or people with nontraditional forms of income.
- Understanding this will help penetrate broader markets.
Local Networking:
- Partnerships with local realtors, financial planners, and other professionals help generate leads.
- Getting involved in local real estate and mortgage associations can also provide networking opportunities.
One can also network professionally by participating in industry conferences and events that offer timely market information.
Growing Sales Expertise
Strong sales abilities enhance the chance of success. These include:
- Communication, listening, and negotiation skills.
- Selling a mortgage product to customers and guiding them through all the processes.
- Consultative selling technique – understanding the client’s needs and offering appropriate solutions.
Advertising and Lead Generation
Develop a comprehensive marketing campaign that is both digital and paper-based. This may mean:
- Setting up and liaising with a specialist firm to construct a company website and advertising through social media to attract and convert clients.
- Community activities and seminars for persons of visible professional stature.
- Regular newsletters and emails to previous leads and customers.
Ongoing Learning and Modification
- The cycle of progress in the mortgage sector never halts. To be competitive in this business, it is extremely important to continuously learn and keep track of industry changes, developments, and shifts in laws and policies over time.
- With the right attitude, a career as a mortgage loan originator is attainable.
- The shift in the market does not seem easy, but it can present a unique set of advantages for those with ambition.
New MLOs must adapt to new technology, know how to build rapport with clients and understand all the various loan options available in the market. This will surely ensure their success in such a competitive field.
https://gustancho.com/remote-mlo-career-opportunities/
gustancho.com
Remote MLO Career Opportunities
Gustan Cho Associates has remote MLO career opportunities for branch assigned loan officers and independent branch managers