NMLS Pre-Licensing
Education For MLOs
(PE)
Looking to begin your career in the mortgage industry or coming from a bank or credit union? Since the incorporation of the NMLS, Diehl has been helping new Mortgage Loan Originators get licensed and pass the NMLS Test on their first attempt with high-quality education that is engaging and entertaining. Let’s help you join one of the most rewarding industries! Click on one of the buttons below to indicate whether you are new to the industry or if you are currently an MLO working for a bank or credit union.
What is an NMLS License?
The Secure and Fair Enforcement Act, also referred to as the SAFE Act passed into law in 2008 in response to the subprime mortgage crisis. The SAFE Act was designed to both protect consumers and encourage states to develop minimum standards for mortgage loan originators. As a result of the SAFE Act, the Nationwide Multi-State Licensing System and Registry (NMLS) was born.
The SAFE Act requires all residential MLOs to be either federally registered or state-licensed. And, a mortgage loan originator who has employment through a federally-insured depository institution, credit union, or a federally-supervised subsidiary must be registered on the national level through the NMLS.
This helps prevent bad actors from the industry from approving questionable or fraudulent loans and staying undetected by applying to multiple states.
The NMLS is a centralized, federal data repository that holds information related to loan officers, finance companies, and mortgage companies. In order to become a mortgage loan originator, you’ll need to get an NMLS license.
Your NMLS license gives you a unique identifying number that allows state and federal regulators to track and supervise mortgage and mortgage-related data. To update or change your mortgage education status, you’ll need to go through this centralized NMLS system.
MLO License Requirements
To become a mortgage loan originator, you’ll need to put in some legwork. Here are the two basic components you need:
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20 Hours of NMLS-Approved Education
You will need a minimum of 20 hours of NMLS-accredited or approved education. The following states require more than 20 hours of state-specific education: CT, NE, NV, NC, OH, TX-SML, UT-DRE, WA, WV.
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Pass the NMLS Licensing Exam
You’ll also be required to pass the NMLS licensing exam to become an MLO as well.
When you meet these two requirements, you’ll be able to apply for an NMLS license. -
NMLS New License State Requirements
Many states have different mortgage education requirements, so it’s critical to ensure that you’re approved to originate loans in the right state.
State-specific requirements might include the following:
·Fingerprint cards
·Financial statements
·Net worth information
·Pre-licensing education
·Loan officer licensing
·Continuing education
·Mortgage industry experience
·Compensation format requirements
As you can see, it’s incredibly important to research your state laws before going to the NMLS. The NMLS provides company users with state-specific documents required to be sent in as part of the initial licensing process. However, the NMLS doesn’t provide information about state licensing laws so all mortgage companies need to understand the state licensing regulations and rules before embarking on the licensing process.
And remember, the state regulators still make the ultimate licensing decision. The NMLS is not a regulatory body.
NMLS requirements by state differ, so keep track of what you need to become an MLO.
Choose Your State
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NMLS Exam Prep
If you want to be as prepared as possible to pass the NMLS exam, it’s important to choose an NMLS test prep system designed to maximize your comprehension. Diehl Education offers licensees comprehensive, NMLS-approved courses and test prep so you can approach the exam with the confidence and knowledge you need to pass the first time.
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How To Take the NMLS SAFE Mortgage License Exam
After you successfully complete your education and state-specific requirements, you’ll need to schedule an appointment to take your exam at a designated testing facility.
If you pass your licensing exam, you can fill out and submit an application for a mortgage loan origination license through the NMLS website. In some cases, the mortgage company you work for might fill out the paperwork required for the license on your behalf -- so it’s important to double-check before submitting your application.
Although not every state requires this step, you might need to pass a background check and submit copies of your fingerprints as well as your credit report. Again, your state might have different requirements, so make sure you’re aware of what additional steps you need to take, if any.
Need Help? Contact Us
Our customer service team is here to help YOU. Whether you are having trouble figuring out what you need, or need help logging into a course, our team of experts are here to assist you every step of the way.
What our customers say about us
"You are part of my success. Thank you for making this a marking life event for me. Thank you so much, we did it."
Pedro, Licensed MLO
"My students, when they take the course, if they pass the Test Prep Materials, I have almost 100% passing ratio on the State and National exams."
Lisa, Licensing Manager
"When we get through an educational event, and I get positive feedback from our members...quite frankly I've done my job, we've done our job and we've provided ourselves a great opportunity to not only retain those members in the association but to be able to effectively reach out to new members and grow the association."
Al Thorup, IMBA Executive Director
Pre-Licensing
Education (CE) FAQs
Becoming a mortgage loan originator can be a lucrative career path, so you may be wondering how to get your NMLS license to begin your career. We’ve broken down the process into four simple steps to help you get started:
- Create an NMLS account
- Complete NMLS Pre-Licensing Education
- Pass the NMLS licensing exam
- Apply for your MLO license
You can refer to the NMLS Resource Center to learn more about the NMLS requirements needed to become a certified mortgage loan originator.
To obtain your MLO license, you must complete 20 hours of Pre-Licensing Education. NMLS Pre-Licensing Education courses consist of:
- 3 hours of Federal Law
- 3 hours of Ethics
- 2 hours of Non-Traditional Mortgage Lending
- 12 hours of Electives
Pre-Licensing Education may also vary by state. So, if you’re considering adding an MLO license make sure to look into the state-specific NMLS course requirements.
On top of your NMLS Pre-Licensing Education, you’ll also have to pass the NMLS licensing exam, also known as the SAFE MLO test, with a score of 75% or higher. The test includes 120 questions that cover the following:
- Federal mortgage laws
- General mortgage knowledge
- Origination activities
- Ethics
Due to the rigorous nature of the exam, it’s essential that you take advantage of the MLO Test Preparation resources available to ensure you pass the first time around. Our SAFE Test Prep Tools include flashcards and practice exams that closely emulate the real thing. Plus, scoring 95% or higher on our Prep2Pass™ Simulated Test means you have a higher chance of achieving a passing score on the SAFE MLO test.
While there are many PE courses to choose from, none of them compare to our NMLS-approved Pre-Licensure Education courses. Our course content is updated frequently by industry professionals to ensure MLOs have the most current information in the industry. Courses include highly engaging material that can be completed in a live classroom setting online or via a live stream webinar. Whatever learning path you decide, you’re guaranteed a comprehensive course that’ll exceed expectations. In fact, we currently have a 97% student satisfaction rate.
At Diehl Education, we’re committed to your success. From Pre-Licensing Education to our extensive Prep2Pass™ app, you’ll receive the knowledge needed to pass the NMLS exam and obtain your MLO license. Plus, we offer state-specific PE courses, so you can meet your state’s licensing requirements or get an additional license in another state.
Diehl Education also provides Continuing Education (CE) courses for when it’s time to renew your MLO license. Our CE courses include eight hours of updated NMLS-approved mortgage education, so you can stay informed on the latest regulations and trends in the mortgage industry. Remember, this is an annual requirement that must be satisfied to maintain your license in good standing.
They truly want to see you succeed and will do whatever they can to help.
Diehl and Scott are fantastic! They really helped me in my preparation for my state licensing exam.
Specially the app, Prep2Pass. I can't imagine using anyone else!
Brand new to this industry and passed the Federal exam first time in less than 30 days. Scott presents the online class in a laid back professional atmosphere which totally helps doing the 20 hours compliance training.
With the training provided by Diehl and the study tools that were given to me I was able to pass the National test on my first try. I would recommend this training to anyone wanting to take their MLO test.
Today I passed my NMLS exam with an 81. Thanks Frank and Scott. You guys Rock!!!
Mortgage Loan Officer Education Support
Ready to launch your career as a Mortgage Loan Originator? We have a 97% Student Satisfaction Rate and are here to help you get licensed, remain licensed and grow your business.
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Test Prep
Get ready for your SAFE MLO exam with our Prep2Pass™ test prep tools. From test simulations to digital flashcards, our test prep options provide the foundation you need to enter your exam with confidence. Plus, if you fail the NMLS Test after scoring a 95% on a Prep2Pass™ Simulated Test, we will give you 100% of your money back. See terms and conditions at the bottom of the page.
The Pass Promise Terms & Conditions: In order to qualify for a refund, you must send a copy of your SAFE MLO Exam failure notice and must score at least a 95% on one of your simulated exams.