Abacus Mortgage Training and Education

License to Originate

A little mortgage food for thought, especially if you are a first time visitor to Abacus Mortgage Training and you intend to get your mortgage license.

NMLS Test First-Time-Pass Success Requires Both Mortgage Broker Education and Loan Officer Training

It is critical that the NMLS Test and the licensing process does not stand in the way of your staffing, if you are a company, or limit your employment opportunities if you are an individual. Passing the NMLS Test on the first try requires both mortgage training and education.

Why do we insist you need both "education' and "training?"

Because you must pass the NMLS Test to get licensed; and, you must be able to apply your knowledge to originate mortgage loans successfully.

 “Loan Officer Training” is the mortgage industry catch phrase used to mean acquiring the fundamentals of origination mortgage loans. This includes understanding proper disclosure, protecting borrower’s rights, mastery of the 1003 form, mortgage math and understanding issues of credit. Your mastery of this specific body of mortgage fundamentals are the basis for today’s Mortgage Loan Originator (MLO). Loan officer training deals with a significant percentage of the content addressed on the NMLS Test required by state and federal law as a prerequisite for obtaining your MLO license.  In summary, this body of content is far more fundamental and ground-level than the material covered by “Mortgage Broker Education”.

“Mortgage Broker Education” is the term used to mean acquiring the mandatory education necessary to meet all state and federal requirements for Pre-licensure Education (PE) and Continuing Education (CE) in order to obtain and maintain your MLO license.  While ongoing Loan Officer Training is vital for the new and experienced MLO, passing the NMLS Test requires a comprehensive mastery of mortgage law, the primary and secondary mortgage markets, mortgage processing, loan file underwriting and full understanding of mortgage ethics. The SAFE Act requires individual licensure of Mortgage Brokers, Mortgage Lenders and their loan officers.  While Continuing Education is required for licensure renewal, as long as the MLO properly maintains their Loan Officer’s License the MLO will not have to repeat the NMLS Test.

We consider both Loan Officer Training and Mortgage Education imperative. You need to meet your basic requirements for licensure which includes sitting for your Pre-license Education, master the test-prep tools and pass the NMLS Test. You also need the fundamental mortgage training to succeed as a mortgage originator, and this requires you become a student of the mortgage business. The national SAFE Act Test will require you to focus on your “mortgage Education”. Success as a Mortgage Loan Officer will require an ongoing commitment to “Loan Officer Training”.

The SAFE Act Test is designed to find any gaps in your knowledge of the mortgage industry and ensure that you are competent to sit across from a borrower with reasonable skill and care.

You can probably see our punch line coming but with so much at stake we don't consider repetition obnoxious: in no uncertain terms you must obtain mastery over both Mortgage Broker Education and Loan Officer Training for success on the NMLS Test.