Should I get my MORTGAGE / Loan Origination License?

Question

Practically every other week you would see a post on Bigger Pockets "If I should get my real estate license" but I have not seen anyone ask if they should get their mortgage license. Firstly, I don't believe one can be very competent trying to become successful at both. You should either try to become a success broker or a loan originator, but not both.

I am wondering if it would be worth my time to get my mortgage license to refinance and originate my own personal loans for my investment properties. I have absolutely no interest in originating loans for my clients or other people as I know the team and paperwork that will be required to run a mortgage brokerage business.

So for those of your who are in the mortgage business, do you think it would be worth my time? In the real estate brokerage business, one would need to get their sales license and work under a broker for 3 years before they can take the broker state exam and open up their own brokerage firm.

What is the process for the mortgage license and hours required to take the exam? What are the annual costs involved and would I be required to hang my NMLS license with another mortgage broker? Would I need a mortgage brokerage or a bank to sponsor me to take the NMLS state exam.

Thank you.

James

Ivan Torres · Answer

for a while i was wondering if I should get my mortgage broker license..... I definitely think that is worth it; in my case I'm going to tell you why is worth....i had my wife take sales real estate associate license because I know how to do the business, so what I'm going to do now is get my mortgage broker so, I can originate the loans get paid a commission and also use my wife's license for the purchase. So you offer better service and also get paid for doing so. Let's say you have a friend or relative... past client etc. You get them a loan for 300k. You make 3% to 4% equals 9k. And you also do the purchase of the property... another 9k. 18k total just in one property. If you work hard I'm sure you can sell at least 5 to 7 properties.... Make the math, figure out if is worth it. Some people make way more than 100k a year in RE, so i'm not sure if this is your case, but I personally think is great to have it. Again in my case I have my wife who supports everything I do. Thank God. Hope this helps. God bless!!!!!

Tyler Hodgson · Answer

You cannot originate your own mortgage, unfortunately. And you must work under a company license. So either start your own shop or join someone else's. Things got crazy when NMLS came around.

I say get the license and originate some loans for other investors and friends you have. And if you work at a small local company maybe a fellow loan officer at that company can originate your loan and help out with some of the fees since you are an employee.

Hope this helps!

James Park · Answer

Bump. Anyone have any good advice?