Mortgage loan officers are the client-facing professionals who assist prospective homebuyers in obtaining a mortgage loan. While you may be thinking that only those with a formal college degree can become MLOs, this is a common misconception. Individuals from all different backgrounds become mortgage loan officers. Becoming an MLO simply requires training and licensure, regardless of college attendance. So let’s take a look at the various ways that people can enter the mortgage industry and become an MLO that don’t involve a formal education.
Alternatives to a degree.
The mortgage industry often places more emphasis on experience, skills, and licensing than on a college degree. So, if you’re looking to become an MLO but obtaining a college degree isn’t in the cards for you, there are other ways to enter the profession.
One way is through on-the-job training. Many professions in the financial sector offer entry-level employees the opportunity to undergo training while they work. Some will even help defray the costs of education and licensing once you’re ready to pursue becoming a full-fledged MLO. Often, this training will involve shadowing experienced loan officers, which allows novice employees to observe how the work is performed while learning skills and strategies.
Certification programs are also available without the need for a college degree, the most common one being the Mortgage Loan Originator license. If this path appeals to you, you’ll need to take pre-licensing courses, pass the SAFE MLO exam, and look into required state-specific training where you live. What’s more, mortgage associations, such as the Mortgage Bankers Association and the National Association of Mortgage Brokers, offer additional certifications structured to help licensed MLOs enhance their skills and knowledge of everything from ethics to lending practices.
Mentorships are another way that newer MLOs can learn helpful tips and build their confidence. Some companies will pair new MLOs with experienced loan officers who help answer questions and provide other guidance while the novice gets their career up and running. But, you don’t have to count on your employer to provide mentorship opportunities. Networking is a great way to meet MLOs who are further along in their career and may be open to helping you succeed.
Regardless of which path you choose, the easiest way to start taking advantage of these opportunities is by seeking employment within the industry. Getting on with an employer is a great way to build your knowledge and expand your network.
Building a strong skill set.
A good mortgage loan officer will have a set of skills that combine the principles of the position with the interpersonal traits needed to lead a successful career:
1. Financial Literacy. While MLOs don’t necessarily have to be high financial experts, they do need to know certain financial concepts such as debt-to-income ratio, credit scores, and how to determine if the borrower’s financial situation is compatible with the lender’s requirements.
2. Analytical Skills. Mortgage loan officers should be able to accurately analyze the information given to them beyond face value.
3. Technological Skills. MLOs will regularly have to use mortgage software, CRM (customer relationship management) systems, and other tech tools to both perform their duties and communicate with their clients.
4. Customer Service. Excellent client service can make or break an MLO. Customer experience can be responsible for future business, referrals, and overall professional growth.
5. Sales. The art of persuasion is one of the little-known skills that successful MLOs have. Part of a loan officer’s job is to sell certain mortgage products to prospective buyers and be able to negotiate terms that are favorable to both parties (borrower and lender).
6. Communication Skills. Both verbal and written communication skills are necessary to effectively express complex mortgage processes to borrowers. So, MLOs must have nearly impeccable communication abilities, including the ability to actively listen and respond appropriately and with empathy.
7. Integrity. MLOs are entrusted with a high level of the public’s trust. They must not only remain committed to the ethical standards of the mortgage industry, but also possess a personal code of integrity in their work.
If you’re interested in developing any of these skills, you’re in luck. As an MLO, you’re required to complete a certain amount of continuing education courses each year. These courses help MLOs continuously improve their performance. In addition to CE, there are opportunities to network with other professionals in the industry to learn new principles, techniques, and other tools of the trade.
Making a career change.
Making the decision to change careers can be both exciting and challenging, regardless of the industry. The key to transitioning more seamlessly is to prepare yourself for those challenges. Here are a few helpful tips to get started:
1. Research. Any career change should involve careful research about the pros and cons of the new path. The mortgage industry is dynamic, so gaining an understanding of the market, loan types, how the industry is regulated, and other factors should be part of that research.
2. Gain Relevant Skills. Identify what skills are needed to be successful in the chosen career path and acquire those skills. You can do this through self-study, formal training, or on-the-job training.
3. Be Open to Entry Level. There are several entry-level positions within the mortgage industry that do not require a license, but will help MLO hopefuls gain valuable experience in the field. Try applying as a loan officer assistant, a closing coordinator, or even a mortgage customer service representative.
4. Leverage Transferable Skills. Being a successful mortgage professional requires both hard and soft skills. Many professions use the same skillset that MLOs must have. Examine the skills you’ve acquired in previous professions and see where they can be transferred to a new mortgage career.
5. Build Connections. Networking is not only a great way to progress in your mortgage career, but it also helps make inroads as a novice. There are often industry events you can attend; but, if that’s not feasible, there are online forums where mortgage industry hopefuls can learn valuable information about the career path.
It’s important to remember that there are plenty of career trajectories within the mortgage industry. It is not uncommon for MLOs to go on to become mortgage brokers, even opening their own brokerage firm. Both lateral and vertical career movement is always a possibility.
Is becoming an MLO right for you?
Career choices are personal, so at the end of the day, it’s up to you.
Being an MLO is a challenging, yet rewarding, career path that’s accessible to many, even without a college degree. While becoming a full-fledged mortgage loan officer will require specific education and licensure, it is possible to garner many of the skills needed by working in an entry-level position, or getting a mentor to help with the journey. Regardless of how you get there, it will take hard work, determination, and focus.
If you’re ready to get started, The CE Shop offers the pre-licensing courses you need to become a successful mortgage loan officer, all delivered in an accessible, remote learning environment.
MLO FAQs
What are the key skills required to be a successful mortgage loan officer?
Required skills include customer service, sales, financial analysis, effective communication, and integrity.
What is the difference between on-the-job training and certification programs?
On-the-job training is designed to offer hands-on experience in a practical setting. A certification program is an educational program specifically designed to teach certain skills or concepts and is usually held in a classroom format (including online).
How can I make a successful transition into the mortgage industry?
Be open to entry-level or mortgage-adjacent roles. This opens up learning opportunities and hands-on experience that will be valuable once you get your MLO license.
What are the opportunities for career advancement in the mortgage industry?
The mortgage industry offers the opportunity for advancement in many ways. An MLO may go on to be a senior MLO, mortgage broker, underwriter, or even chief lending officer.
How can I market myself and stand out to potential employers in the mortgage industry?
Showcasing existing skills that cross over to the mortgage industry is a great way to look attractive to prospective employers. In addition, having a resume that highlights the ways you’ve taken the initiative to learn about the mortgage industry is a big advantage. Lastly, networking may help connect you with your ideal employer.
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