How to get (or renew) your NMLS license in 2024 by Kennedy Edgerton for HousingWire

Entity

Set-up costs

Processing costs

Company

$100

$100

Branch

$20

$20

Individual

$30

$30

Here’s a cost breakdown for some of the processing, registration and background check costs involved in getting your NMLS license. We’ve outlined examples from some of the more populous states, but these costs are state-specific and will vary based on where you live.

California

Processing fee: $30

Credit report fee: $15

FBI Background check: $36

Fingerprints fee: $39

Renewal fee: $300

Texas

Processing fee: $100

Credit report: $15

Registration fee: $190

FBI Background check: $36

New York 

Processing fee: $379, including $125 investigation fee and $254 license fee

Credit report: $15

FBI Background check: $36

Fingerprint fee: $99

Florida

Processing fee: $30

Application fee: $195

Mortgage guarantee trust fund fee: $20

FBI Background check: $36

State Background check: $24

How to get an NMLS License (in 4 steps)

So, now you know what an NMLS is and some of the expenses associated with getting your NMLS license. But, how do you actually get the license? Let’s walk through step-by-step guide for getting your NMLS license. You’ll be in business in no time if you focus on these five simple steps:

Step 1: Review your state’s eligibility requirements

Most states will have a few things in common when it comes to prelicensing requirements. For example, all states will require no less than 20 hours of coursework before you can get your license and NMLS number.

Start your NMLS license search by getting to know your state’s NMLS requirements before considering a prelicensing course. There’s no sense in committing time and money toward a prelicensing course if you don’t meet the eligibility requirements. But remember, no two states are alike, and each will have its own unique requirements for getting your NMLS license.

For example, Arizona requires an extra four-hour, state-specific course while New York only requires an additional three-hour state-specific course. This may seem like a small difference, but it’s important to keep these things in mind when pursuing your license. If you’re looking for specific prelicensing requirements, look no further than your state’s .gov page for info. 

Step 2: Complete a prelicensing course in your state

Now that you’ve done your research like the scholar you are, it’s time to head back to school and knock out your prelicensing coursework. Almost all states require at least 20 hours of coursework before you can get your license. Those hours cover different topics that will benefit you on the other side.

Here’s a general breakdown for your average prelicensing course:

3 hours of federal law

3 hours of ethics

2 hours of non-traditional mortgage lending

12 hours of elective coursework, which can vary based on your state

Also, check out this chart that details NMLS prelicensing and continuing education course hour requirements by state:

Notice how New England, Nevada, North Carolina, Ohio, Texas, Utah and West Virginia all require more than 20 hours. Check out your state’s requirements at this link:

View NMLS state-specifici education requirements

At the end of your course, you’ll take a prelicensing exam. Once you pass (and we know you will), go ahead and pat yourself on the back. But, don’t take too long. NMLS only opens the registration window for a short period of time once you complete your prelicensing work. 

Step 3: Pass the SAFE MLO exam

Your prelicensing course should’ve taught you a lot about working as an MLO in your state. However, you’re not out of the classroom yet. According to the SAFE Mortgage Licensing Act of 2008, all aspiring mortgage loan officers have to pass the SAFE MLO exam to get a NMLS license.

The exam is designed to test your understanding of what you studied in class. The exam has a time limit of around three hours with 120 questions (115 scored and 5 unscored). It’s the only thing that stands between you and your new MLO license (and a new career!). Your questions will cover federal mortgage laws, general mortgage knowledge, MLO activities and more.

You’ll need a score of 75% to pass. Sounds easy, right? It can be, if you prepare and study enough ahead of time. Keep in mind, only 58% of exam takers pass the NMLS exam on the first try, so it may not be a good idea to show up and wing it on test day. 

Sample questions

Here are a few sample questions to give you an idea of what you’ll face on the NMLS exam:

A borrower has a front-end ratio of 28% and a back-end ratio of 36%. If the borrower’s monthly gross income is $5,000, what is the maximum allowable monthly mortgage payment (including taxes and insurance) according to the front-end ratio?

$1,400

$1,800

$2,000

$1,500

Which of the following is a requirement under the Real Estate Settlement Procedures Act (RESPA)?

The lender must provide the borrower with a Good Faith Estimate (GFE) within three business days of receiving the loan application.

The lender must notify the borrower of the credit decision within 30 days of receiving the loan application.

The borrower must receive a copy of the appraisal report no later than one business day before the loan closing.

The lender must ensure that the borrower has homeowner’s insurance before the loan closing.

Where to find MLO practice tests

Practice tests can give you an edge when you finally sit down and take the actual MLO exam. Fortunately, you can access practice questions online and test your mettle prior to your MLO licensing exam. Here are a few free resources you can use to prepare for your practice exam:

The CE Shop

Mometrix Test Preparation

Real Estate Institute

SAFE MLO Exam

ProProfs

Quizlet

Udemy

Step 4: Apply for your license through the NMLS

Congratulations! At this point, you’ve likely passed your state-mandated MLO exam. Now, you can register with the NMLS, receive your registration number and do business as a mortgage loan originator. Before that happens, there are a few more hoops you’ll need to jump through.

First, you or your employer will need to create an NMLS account for you. NMLS will send you a temporary password to set up and you can take it from there. You’ll need to knock out a long, detailed form designated as the MU4R form. You’ll need to provide identifying information including your name, social security number, date of birth, etc. The form will also ask for information about your past employment and details related to your work history.

Download the MU4R form

Once your account goes live, this is what your dashboard will look like:

From here, you can monitor your license application and any outstanding items that you need to complete. The NMLS also lets you monitor invoices and license payments.

Step 5: Complete a background and credit check & pay fees

Now that the hard parts are out of your way, it’s time to bring it home with a background check, fee payments and a credit check. For starters, you won’t be able to fully set up your account without a criminal background check (CBC). You have to submit your CBC through the NMLS website and make it available to any and all relevant parties. From there, you’ll need to schedule and complete a fingerprint appointment to finish the security and ID portion of the registration process.

Once you finish your background check and ID verification, you’ll need to pay your fees. Lastly, you must allow the NMLS to perform a credit check and ensure your record is relatively clean. The NMLS does not require minimum credit scores, but it’s a good idea to keep your report clean and your score relatively high. 

Renewing your NMLS license

The NMLS annual renewal period runs from November 1st through December 31st each year, for both institutions and individual mortgage loan originators. According to federal law, every lending institution is required to renew its registrations in the NMLS for 2025 by the end of the year.

Individual MLOs who were actively registered in the NMLS before July 1st of this year must also renew their registration through the NMLS during this window — which means you’ll need to complete your CE course requirements before doing so.

How often do you have to renew your NMLS license?

Most states require MLOs to renew their NMLS licenses every year between November 1 and December 31. You could simply renew your license on your own or have your company take care of it on your behalf. However, you will need to complete your required CE courses. Your registration will be marked as inactive until you re-register on the NMLS website.

How much does it cost to renew your NMLS license?

You’ll have to pay around $30 per year to renew your NMLS license. However, you’ll have to pay an additional $30 if you miss the December 31st renewal deadline. If you renew under your branch, a $20 fee will apply. An entire company will need to pay $100 to renew NMLS registrations for all MLOs. Generally, your employer will manage the process for your team.

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