Getting your Michigan loan officer license might seem daunting, but we’re here to guide you through the process.
Read on to learn about the 6 steps you’ll need to complete before starting your career as a Michigan Mortgage Loan Officer (MLO). We’ve also answered some of the most common questions that prospective Michigan Loan Officers have as they consider this exciting new career.
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 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.
In Michigan, you’re required to complete 20 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
2 hours of Michigan-specific defined electives
The Michigan-specific 2-hr. course is required by the Michigan state licensing agency, also known as the Department of Insurance and Financial Services.
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.
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, 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.
Now it’s time to submit for official Michigan 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 $250 for the Michigan portion of the licensing fee. Additionally, a credit report must be submitted at the time of application for a fee of $15.
Your 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.
Pre-Licensure Education
The SAFE MLO Test
NMLS Processing Fee
Criminal Background Check
Credit Report
Michigan Application Fee
According to the Michigan Department of Insurance and Financial Services:
A Mortgage Loan Originator is an individual who for profit or gain takes a residential mortgage loan application and/or offers or negotiates terms of a residential mortgage loan.
Note: The titles “Mortgage Loan Officer” and “Mortgage Loan Originator” are often used interchangeably, including in the definition above.
According to ZipRecruiter, Michigan Mortgage Officers make approximately $63,000 per year on average as of November 2021. The 75th percentile of earners makes above $94,000, while the bottom 25th makes under $28,000. Top earners can earn more than $132,000 in Michigan.
From the bustling urban areas of Detroit to the quaint, rural Upper Peninsula, the Michigan real estate market has been firing on all cylinders. Since 2019, home prices in Michigan have risen by 18.4% with no indication of slowing down anytime soon. Low interest rates and increased consumer power mean now is the time to become an MLO.
It pays to be a Mortgage Loan Officer in Michigan. The median home cost in Michigan is $215,000. At a commission rate of 1%, that’s a $2,150 payment for the MLO once the loan is secured. Here are the average home payouts in a few Michigan locations:
Location | Average Home Price | Average Commission |
|---|---|---|
| $235,000 | $2,350 |
Okemos | $312,500 | $3,125 |
Sterling Heights | $269,000 | $2,690 |
Ann Arbor | $435,000 | $4,350 |
Detroit | $580,000 | $5,800 |
$12,500,000 | $125,000 |
All average home price figures were collected from Zillow.
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:
Detroit Home Mortgage (Detroit)
Riverbank Finance (Grand Rapids)
Warren Municipal Federal Credit Union (Warren)
Level One Bank (Sterling Heights)
Lansing Home Loan Center (Lansing)
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.
