A career as a mortgage loan officer in Pennsylvania offers a dynamic path within the financial services sector, focusing on guiding homebuyers through the complexities of securing a mortgage. The state of Pennsylvania has established a structured licensing process to ensure all loan officers possess the necessary knowledge and ethical grounding. This journey to licensure involves a series of defined steps, each designed to build a strong foundation of expertise in the mortgage industry.
Complete Pre-Licensing Education
The first requirement for aspiring loan officers in Pennsylvania is completing an educational curriculum regulated by the Nationwide Multistate Licensing System & Registry (NMLS). Candidates must complete 20 hours of NMLS-approved pre-licensing education, which can be done online. The courses must be taken from an NMLS-approved education provider.
The 20-hour national course covers standardized topics. The curriculum includes three hours on federal laws and regulations, three hours on ethics, and two hours on lending standards for non-traditional mortgage products. The remaining 12 hours consist of elective topics that provide a broader understanding of the mortgage origination process.
In addition to the national requirements, Pennsylvania mandates three hours of state-specific education. This training focuses on the laws, regulations, and procedures unique to the Commonwealth. Both the 20-hour national and 3-hour state-specific courses must be completed before a candidate can proceed with licensing.
Pass the National SAFE MLO Test
After fulfilling the educational prerequisites, candidates must pass the SAFE Mortgage Loan Officer Test, a national requirement for all prospective MLOs. The test consists of 120 multiple-choice questions, with 115 being scored. Candidates are given 190 minutes to complete the exam.
The SAFE MLO Test evaluates a candidate’s understanding of federal mortgage-related laws, general mortgage knowledge, loan origination activities, and ethics. To pass, an applicant must achieve a score of 75% or higher. The cost to take the exam is $110.
NMLS has a waiting period policy for retakes. An applicant must wait 30 days after their first or second failed attempt before retaking the exam. If a third attempt is unsuccessful, the waiting period extends to 180 days.
Submit Your License Application
After passing the exam, applicants submit a formal application through the NMLS. First, prospective loan officers must create an account on the NMLS website to receive a unique identification number that tracks their career. The application is completed by submitting the MU4 Form through the NMLS online portal.
The application process requires authorizing and paying for several background checks. Applicants must consent to an FBI criminal background check, which requires them to schedule an appointment for fingerprinting at a cost of approximately $36.25. Concurrently, applicants must authorize a credit report pull through the NMLS for $15. These checks ensure the applicant meets the financial responsibility and character standards required for the profession.
Submitting the application also requires paying non-refundable fees. In Pennsylvania, the licensing fee is $200, which includes the application fee. All fees, including those for the credit report and background check, are managed through the NMLS portal. Applicants should use the MLO New Application checklist on the NMLS website to ensure all components are complete.
Obtain Company Sponsorship
A mortgage loan originator license in Pennsylvania cannot become active until the individual is employed by a state-licensed mortgage company. This company sponsorship formally links the MLO’s license to their employer through the NMLS. The company is then responsible for overseeing the loan officer’s activities and ensuring compliance.
The sponsorship process can occur while the license application is under review, so many candidates begin their job search while waiting. Finding a sponsoring company involves networking, searching job boards for MLO positions, and contacting banks, credit unions, or mortgage brokerages.
Once an offer of employment is accepted, the sponsoring company uses the NMLS to associate the new hire’s license with their own. This action moves the individual’s license from an inactive to an active status, provided all other licensing requirements have been met and approved. Without this sponsorship, an individual cannot legally begin to originate mortgage loans.
Maintain Your Pennsylvania Loan Officer License
To maintain a license in good standing, Pennsylvania MLOs must complete annual continuing education (CE) requirements. This ensures loan officers remain current on industry regulations, products, and ethical practices.
Pennsylvania requires eight hours of NMLS-approved CE each year. This coursework includes three hours on federal law, two hours on ethics, two hours on non-traditional mortgage products, and one hour of Pennsylvania-specific material covering state law updates.
In addition to CE, loan officers must renew their license annually through the NMLS portal before the end of the calendar year. Failure to complete CE or renew the license on time will result in the license becoming inactive. This halts all professional mortgage activities until the requirements are met.