In an effort to curb the predatory lending practices that led to the demise of the housing and residential mortgage industry in 2008, the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) which was a new federal law which created regulatory practices for loan officers. This federal law opened up a world of opportunity to those driven to attain an MLO license and then work hard to match people with loan products. Every state has a unique set of Nationwide Multistate Licensing System (also known as the Nationwide Mortgage Licensing System or NMLS) requirements concerning mortgage education to obtain a mortgage loan originator license. New mortgage loan originators are required to complete a 20-hour NMLS course, which is standard across the country. Obtaining a Louisiana mortgage loan originator license requires 20 total hours of NMLS approved education education. The Louisiana Office of Financial Institutions does not require any additional pre-license education. After completing your mortgage education courses, you are required to take and pass an NMLS mortgage licensing exam, the SAFE MLO Test. This ensures that you understand the laws and regulations that a mortgage company and mortgage loan officer are held to. In addition to mortgage license education, Mortgage Educators also offers exam prep to help you prepare for the exam.

Although it hasn't been enacted, be on the look out for the PE expiration policy coming soon. It states - If you complete the required 20 hours of education but do not obtain your license for a 3-year period, you'll need to repeat the coursework. The same applies if you let your license lapse for 3+ years before you want to get back into the industry.

A “mortgage broker” refers to an individual or an organization that connects consumers with mortgage loans from a variety of companies. Mortgage brokers frequently employ loan officers who hold mortgage licenses. Mortgage brokers connect homebuyers with different financial institutions to obtain a mortgage loan. In contrast, a mortgage loan officer is an employee who regularly works with borrowers and provides loans that are originated by their employer. Brokers and loan officers need different types of licenses. A loan processor is an individual who assists the loan officer through the origination process by gathering documents, verifying income, reviewing the credit report, and preparing the loan for underwriting. While these are crucial steps to the mortgage lending process, they are not activities that require an individual to hold a mortgage license. Additionally, a mortgage lender that works for a financial institution like a bank or a credit union is not required to obtain a residential mortgage lending license. Financial institutions are overseen by a separate entity from the NMLS.

Earning your mortgage broker license in Louisiana should be considered an investment well worth your time. Here’s what to expect when it comes to licensing fees in Louisiana:

On an annual basis, Louisiana MLO license holders must complete 8 total hours of Comprehensive Continuing Education that must cover:

Remember to take into account the “successive years” rule, which prohibits loan officers from taking the same CE course two years in a row. Mortgage Educators changes its continuing education course annually to ensure there are no issues with the successive years rule.

The deadline to complete CE in Louisiana is December 31st. MLO's in Louisiana are actually prevented from applying for license renewal until they have completed their CE. Also, you'll have to pay a renewal fee of $50.

Mortgage Educators and Compliance is here to answer any additional questions you may have regarding your Louisiana mortgage license. For additional questions, feel free to email [email protected] or use our Wizmo online chat during business hours for assistance.