Mortgage Loan Officer: 8 Mortgage Loan Officer Duties

Mortgage loan officers (or MLOs) are financial services professionals who specialize in helping potential borrowers with the home loan process. The mortgage industry is vast, and mortgage loan officers work for commercial banks, credit unions, financial institutions, and independent mortgage companies. Typically, mortgage loan officers earn a commission per each loan they close on top of their annual base pay.

A mortgage loan officer, or MLO, performs various tasks throughout the course of their workday. Here are eight key responsibilities of mortgage loan professionals:

1. 1. Assist with refinancing: Besides helping first-time homebuyers obtain new mortgages, MLOs also help current homeowners refinance their existing mortgages.
2. 2. Fill out loan applications: Perhaps the most important element of an MLO’s job is to ensure their customers have properly completed or supplied all the financial documentation required to obtain a mortgage. Many other responsibilities fall under this larger umbrella of work for MLOs.
3. 3. Help customers: Mortgage loan officers need excellent interpersonal skills, as they directly engage with people making one of the most potentially stressful, consequential moves of their lives: taking the first steps toward homeownership.
4. 4. Interface with professionals: Loan officers work with multiple professionals within the homebuying industry. They coordinate with appraisers, loan underwriters, real estate agents, and mortgage bankers to ensure the smoothest possible steps forward for their clients.
5. 5. Run background checks: MLOs do a lot to pre-screen and pre-qualify their clients for mortgages. This can mean running both criminal background checks and overviews of credit reports, credit scores, and other financial information.
6. 6. Sort out loan options: Mortgage loan officers must seek out the best types of loans for their individual customers as they fill out mortgage applications. The interest rates and mortgage lender terms that work for one potential homebuyer might not work for another.
7. 7. Undergo continuous training: In accordance with federal and state laws, MLOs must undergo hours of training to meet mortgage education requirements each year to maintain their licensing. This helps them stay on top of all the laws, regulations, and goings-on in the industry that they need to know in order to excel at their jobs.
8. 8. Uphold the law: MLOs are on the front lines of ensuring that mortgage lending professionals uphold federal laws and state requirements. The Secure and Fair Enforcement for Mortgage Licensing Act (or SAFE Act)—that went into effect in the wake of the 2008 mortgage and financial crisis—is near the top of that list.

If you want to become a mortgage loan officer, you will need to obtain a mortgage loan originator license—or MLO license—as a prerequisite to pursuing this career. Here are four steps to meeting the licensing requirements necessary to work for a mortgage lending institution:

1. 1. Complete general education. You must have completed the same general education courses necessary for obtaining a high school diploma or GED to become a mortgage loan officer. Earning a bachelor’s degree—particularly in business, finance, or something similar—can benefit you.
2. 2. Gain work experience. Prior to seeking your license, it can be helpful to find an entry-level job in the general financial and banking field. This will enable you to pair your education with relevant work experience, as well as help you determine whether you enjoy working in the general industry. Many mortgage lending companies will also help train you to take the licensing exam.
3. 3. Prepare for the exam. Take advantage of the various pre-licensing courses and licensing exam prep resources available to help you prepare for the national test. This sort of coursework can set you up for success.
4. 4. Secure licensure. Eventually, you’ll need to take the final national exam that the Nationwide Mortgage Licensing System (NMLS) issues before you can call yourself a licensed mortgage loan officer. If you’re unable to pass the test your first time, you can retake it after 30 days.

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