I'm New to the Mortgage Industry.
Why do people join the mortgage industry?
The job of an MLO offers a great lifestyle. Flexibility in scheduling, helping a client navigate a technical process (where your advice and skills make a difference) and great compensation are some of the keys. Click on “Life of an MLO” (in upper right corner of this screen) for more information. Also, feel free to send us a question.
What’s the compensation like for an MLO?
The Bureau of Labor and Statistics shows the median compensation in 2019 was $63,270. This means that half of all MLOs make more than that and the other half make less. Chances are high that you will meet many people in the industry that make far more than this and some MLOs at the top of their game can even make six or even seven figures. Doing that takes a lot of knowledge, skills and productive relationships.
Lender compensation can vary a lot. Many lenders compensate MLOs a percentage of the loan amount. The industry term is “basis points” and one basis point is 1%, so a lender would pay $3,000 to the MLO on a $300,000 mortgage loan. Generally, the more that the business is self-generated, the more compensation is paid to the MLO. You just learned one of the terms that you need to know for the SAFE MLO test- basis points!
What do I need to do to get into the industry?
The required testing and education is very doable for almost anyone with some rare exceptions. The key is understanding that the mortgage industry provides great opportunities and with some time and effort, you can get licensed and start a new exciting career. Step 1 is to look at what your state requires and take the 20-hour course (which is required in every state). After the course is completed, complete any state required education. You can do this in any order so if you have time before your class you can do a state course first. After that, you’ll schedule the SAFE MLO test and take that in a proctored testing center (located all over the country).
I hear the SAFE MLO is difficult. It that true?
The first-time pass rate in 2019 was 58%. Why do so many people not pass? Not enough studying, bad courses/study tools and no way to tell when you are ready to take the test. I think that’s where Diehl can help you the most. Focusing only on mortgage industry training means our course writers and trainers only cover this subject. Our Prep2Pass test prep tool is the first and only truly mobile app for SAFE MLO test and the ability to talk with any of our staff about any questions on the content has helped thousands complete the required courses and pass the SAFE MLO test with confidence.
How can I make sure I pass on the first attempt?
After you complete the 20-hour course, use Prep2Pass to identify what you know and what you still need to learn. Start with the questions grouped by test topic and when you miss one, study the topic. You can use the course manual which is in a PDF format to look up any subject matter. Repeat the process and move onto the next group of questions until done! Then try a simulated test. After the simulated test, review all your answers and see what you got right and what you missed. Get to 95% on the simulated tests or higher, then take and pass the SAFE MLO test. We have data showing that almost 100% of learners scoring 95% or higher on all the simulated tests passed the SAFE MLO test on their first attempt.
What’s good to know for people new to the industry?
This is a great industry and completing the education and testing is doable. Being new to the industry gives you an advantage. The information you see in the course and test prep is in the same format you need to learn and apply it. There is a lot to learn but with the right tools you can and will succeed.
Questions? Reach out to get your questions answered by clicking here.