Most homebuyers/homeowners don’t realize there are two different types of mortgage loan officers. Both can help you obtain a mortgage, but there is an important difference in how they’re licensed and regulated.
State-Licensed Mortgage Loan Officers
Hold an individual NMLS license. Complete required pre-licensing education. Pass the SAFE Mortgage Loan Originator Test. Complete annual continuing education. Must meet ongoing licensing and compliance requirements.
Registered Mortgage Loan Officers
Typically work for federally regulated banks or credit unions. Are registered with the NMLS rather than individually state licensed. Operate under their institution’s federal registration requirements.
Does This Mean One Is Better?
Not necessarily.
There are outstanding loan officers in both groups. The important thing is choosing someone who is knowledgeable, communicates well, and puts your interests first.
For me, maintaining an individual NMLS license means I’m committed to continuing education and staying current on changing lending guidelines and regulations every year.
Bottom Line
When choosing a mortgage professional, don’t be afraid to ask questions about their experience, communication style, and licensing. An informed borrower is usually a more confident borrower