To become a mortgage broker in the United States, you must be licensed by the state in which you work. Each state has its own set of regulations for licensing, so you do need to make sure you become familiar with these regulations in order to meet the requirements. The following is a sample of the various requirements for licensing in each of the fifty states.
- Alabama – anyone operating as a mortgage broker must have a license and can deal in both first and second mortgages.
- Arizona – you must have a physical office and pass a state exam to obtain the license.
- Arkansas – you will only need a licensed if you are working on your own.
- California – there are two approaches you can take to obtaining a license in this state – one dealing with real estate and the other dealing with finance lending.
- Connecticut – you will need a license for first mortgages and another for second mortgages when you practice in this state.
There is a difference between the job of mortgage broker and loans officer, even though the work of both positions is similar. As a mortgage broker, you are personally responsible for the ethics of handling the process of gaining approval for the loan. A loans officer has the umbrella of the financial institution to protect him/her in such a situation. Working as a broker you can make more money than by working with a specific institution and the fees you get paid depend on the amount of each loan. The borrower pays these fees, which are often added to the original loan amount so that there is no money out of pocket.