Washington Mortgage Loan Officer Pre-Licensure
How to Get a Mortgage Loan Officer License in Washington
How to Get Started as a
Washington Mortgage Loan Officer | Requirements to Become an MLO Through NMLS
We’ve compiled the six steps you’ll need to take to enroll in Washington Pre-Licensure Education (PE) and start your new career as a Mortgage Loan Officer (MLO). We’ve also answered some of the most common questions that prospective Washington Loan Officers have as they consider this exciting new career.
How to Become a Loan Officer in Washington
1. Request an NMLS Account
Before beginning the educational component of licensing, prospective Loan Officers must create an NMLS (Nationwide Multistate Licensing System & Registry) account on the State Mortgage Registry website. NMLS is a national database in which all Washington MLOs must register. After creating their account, applicants receive a personal NMLS number that will be maintained for the duration of their time working as a Loan Officer.
2. Complete NMLS-Approved Pre-Licensure Education
In Washington, you’re required to complete 22 hours of coursework in order to meet the education requirements. The courses include the following:
- 3 hours of Federal Law
- 3 hours of Ethics
- 2 hours of Non-Traditional Mortgage Lending
- 10 hours of General Electives
- 4 hours of Washington-specific defined electives
The Washington-specific 4-hr. course is required by the Washington state licensing agency, also known as the Washington Department of Financial Institutions.
3. Pass the SAFE Mortgage Loan Officer Test
The SAFE MLO Test can be scheduled by visiting the NMLS website. Applicants use their existing account number to schedule the exam. The exam has 115 scored questions, and test takers must answer at least 75% correctly. It costs $110 to take, and students are given 3 hours and 10 minutes to complete the test. You can learn more by reviewing the MLO Testing Handbook.
Did You Know?
The SAFE MLO Test is not easy, and NMLS previously released a statement that the first-time pass rate was only 58%. Study smarter by purchasing a comprehensive Exam Prep program to help you feel confident on test day.
Buy Your Exam Prep »4. Complete State and FBI Criminal Background Checks
Washington applicants will need to login into their NMLS account and head to the Filing section. From there, click on the Criminal Background Check tab. You will authorize a Federal Criminal Background Check by completing the fields and clicking Attest.
Then, Washington applicants must schedule an appointment to submit their fingerprints. In the portal, users will click on the Composite View button then select Criminal Background Requests. In this module, you can schedule your fingerprinting appointment by clicking the “Fieldprint” button.
The total cost of the state and FBI criminal background check is $36.25.
5. Complete the NMLS Application
Now it’s time to submit for official Washington licensure through NMLS. Applicants will apply through the NMLS licensing portal. Applicants are advised to review the MLO New Application checklist beforehand in order to ensure they’re ready to apply.
You’ll need to pay $125 for the Washington portion of the licensing fee. Additionally, a credit report must be submitted at the time of application for a fee of $15.
6. Secure Your Employer Sponsorship
Your Washington Loan Officer License will remain in pending status until your employing sponsorship is verified with NMLS. This verification is completed inside of the NMLS portal. Users will visit the Form Filing Home screen, then click Company Access. They’re then prompted to add their employer sponsorship by submitting employment details. Once the sponsoring employer receives notice of the verification request, they can approve the sponsorship. Upon approval, applicants are officially licensed.
Summary of Washington MLO Fees
$200-$500
Pre-Licensure Education
$36.25
Criminal Background Check
$110
The SAFE MLO Test
$15
Credit Report
$30
NMLS Processing Fee
$125
Washington Application Fee
What Else Is There to Know About Becoming a Mortgage Loan Officer in Washington?
What is the definition of a Mortgage Loan Officer in the state of Washington?
The summary below is taken from the Washington State Legislature:
“Registered Mortgage Loan Originator" means any individual who meets the definition of Mortgage Loan Originator and is an employee of: (a) A depository institution, a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the farm credit administration; and (b) Is registered with, and maintains a unique identifier through, NMLS. "Residential real estate" is real property upon which is constructed or intended to be constructed, a single family dwelling or multiple family dwelling of four or less units.
- Residential real estate includes, but is not limited to:
- A single family home;
- A duplex;
- A triplex;
- A fourplex;
- A single condominium in a condominium complex;
- A single unit within a cooperative;
- A manufactured home; or
- A fractile, fee simple interest in any of the above.
- Residential real estate does not include:
- An apartment building or dwelling of five or more units; or
- A single piece of real estate with five or more single family dwellings unless each dwelling is capable of being financed independently of the other dwellings.
Note: The titles “Mortgage Loan Officer” and “Mortgage Loan Originator” are often used interchangeably, including in the summary above.
How much do Washington Mortgage Loan Officers make?
According to ZipRecruiter, Washington Mortgage Officers make approximately $75,000 per year on average as of November 2021. The 75th percentile of earners makes above $105,000, while the bottom 25th makes under $37,000. Top earners can earn more than $129,000 in Washington.
What is the Washington market like for Mortgage Loan Officers?
Washington's real estate market is one of the fastest growing markets in the country. With low interest rates, a high quality of life, and plenty of economic opportunity, home prices in the state of Washington have jumped by a whopping 22.8% over the past year. That's great news for MLOs looking to make deals happen more frequently and earn higher commissions.
Is Washington a good state to work in as a Mortgage Loan Officer?
It pays to be a Mortgage Loan Officer in Washington. The median home cost in Washington is $548,000. At a commission rate of 1%, that’s a $5,480 payment for the MLO once the loan is secured. Here are the average home payouts in a few Washington locations:
Seattle:
Average Home Price: $871,000
Average Commission: $8,710
Spokane:
Average Home Price: $361,000
Average Commission: $3,610
Tacoma:
Average Home Price: $461,000
Average Commission: $4,610
Bellevue:
Average Home Price: $1,300,000
Average Commission: $13,000
All average home price figures were collected from Zillow.
What are some of the notable Washington mortgage loan companies?
If you’re looking to get in contact with mortgage loan companies to ask about the profession, services, or employment opportunities, you can contact any of the following local businesses:
Westwood Mortgage (Seattle)
Spokane Mortgage Lenders (Spokane)
Northwest Mortgage Services, Inc. (Tacoma)
Directors Mortgage (Bellevue)
What about assistance in the application process?
Applying for an MLO license through NMLS can be a challenging process for individuals and businesses. Fortunately, there are companies who specialize in expediting this process and taking the guesswork out of working with the NMLS. If you or your mortgage business is interested in this type of service, Guide Mortgage Licensing may be a helpful option.