What is a Mortgage Loan Originator (MLO)?

A Mortgage Loan Originator (MLO) is a licensed professional who helps borrowers obtain loans to buy residential or commercial properties. MLOs work with banks, credit unions, mortgage companies, and independent brokerages to match clients with suitable loan options.

• Responsibilities of a Mortgage Loan Originator
• Advising clients on loan products and eligibility.
• Collecting and reviewing financial documents.
• Submitting loan applications to underwriters.
• Ensuring compliance with lending laws.
• Communicating loan status updates to clients.
• Building relationships with real estate agents and lenders.

MLOs earn commissions based on the loans they close, making it a lucrative career for those with strong sales and networking skills.

Step-by-Step Guide to Becoming an MLO in San Diego

Step 1: Meet the Basic Requirements

Before starting the licensing process, you must meet the basic eligibility requirements:

✔️ Be at least 18 years old.

✔️ Have a high school diploma or GED (a college degree is not required).

✔️ Have no felony convictions related to financial crimes within the last seven years.

✔️ Have a clean financial background (no outstanding debts, foreclosures, or bankruptcies that could raise red flags).

If you meet these requirements, you can begin the licensing process.

Step 2: Complete the 20-Hour Pre-Licensing Education (PE)

To become an MLO in San Diego (or anywhere in California), you must complete a 20-hour pre-licensing education course from an NMLS-approved provider. This course covers:

• Federal mortgage laws
• Ethics in lending
• Non-traditional mortgage lending
• General mortgage loan origination topics

You can complete this coursework online or in person. Some of the best providers include:

The #1 school is 24hourEDU Mortgage Loan Originator Education, NMLS Training Provider ID:  1405107.  The tuition is just $189.

Others:

• Mortgage Educators & Compliance
• OnCourse Learning
• The CE Shop
• Kaplan Real Estate Education

These other courses typically costs $250–$500 and they do not include exam prep. 24hourEDU does include Exam Prep with the tuition, plus the California DFPI Laws Course as an added bonus.  If you are not a licensed real estate broker in California, you will need to complete the extra 2-hour CA Mortgage Laws course to earn your MLO license.

Step 3: Pass the SAFE MLO Exam (National Test)

After completing your 20-hour course, you must pass the SAFE Mortgage Loan Originator Test (also known as the NMLS National Test).

Test Details:

• 125 multiple-choice questions
• 190 minutes (3 hours, 10 minutes) to complete
• 75% passing score required

Tips for Passing the NMLS Exam:

✔️ Take practice exams to familiarize yourself with the test format.

✔️ Review federal mortgage laws and industry regulations.

✔️ Study loan types, underwriting guidelines, and ethical practices.

✔️ Use exam prep resources from providers like 24hourEDU.

The exam fee is $110, and you must register through the NMLS website.

If you fail, you must wait 30 days to retake it. After three failed attempts, you must wait six months before trying again.

Step 4: Complete Background Checks & Fingerprinting

To ensure you meet state and federal regulations, you must undergo a criminal background check and provide fingerprints.

Fingerprinting: Must be submitted via the NMLS system. 

Background Check: Conducted by the FBI and California Department of Financial Protection and Innovation (DFPI).

You can schedule an electronic fingerprinting appointment through NMLS-approved vendors. The fingerprinting fee is approximately $45–$60.

Step 5: Apply for Your California MLO License

Once you have passed the exam and completed your background check, you can apply for your California Mortgage Loan Originator (MLO) license.

Here’s how:

1. Access you account on the NMLS website (www.nmls.org).
2. Complete the Individual Form (MU4) application.
3. Pay the licensing fees, which total around $330 (including application, credit report, and processing fees).
4. Submit your fingerprints and background check.

The California Department of Financial Protection and Innovation (DFPI) will review your application, which can take 2-6 weeks.

Step 6: Get Sponsored by a Mortgage Company or Broker

Before you can legally work as an MLO, you must be sponsored by a licensed mortgage company or broker.

If you plan to work for a bank or credit union, you don’t need an individual MLO license, as they are federally regulated.

If you plan to work for a mortgage broker or non-bank lender, you must be licensed.

Your employer will submit a sponsorship request through NMLS. Once approved, your license becomes active, and you can start originating loans.

Step 7: Maintain Your MLO License (Continuing Education)

Once licensed, you must renew your license every year by completing 8 hours of continuing education (CE), which includes:

• 3 hours of federal law
• 2 hours of ethics
• 2 hours of non-traditional mortgage lending
• 1 hour of California-specific content

License renewal applications must be submitted through NMLS by December 31st each year.

How Much Do Mortgage Loan Originators Earn in San Diego?

MLOs in San Diego have strong earning potential, especially in the booming real estate market.

San Diego Loan officer Salary Breakdown:

• Entry-Level MLOs: $50,000–$75,000
• Mid-Level MLOs: $80,000–$150,000
• Top Producers: $200,000+

Most MLOs earn money through commission-based compensation. This means the more loans you close, the higher your earnings.

Final Thoughts: Is Becoming an MLO in San Diego Worth It?

Becoming a Mortgage Loan Originator in San Diego, CA can be a lucrative and fulfilling career. If you enjoy helping people, have strong sales skills, and thrive in a fast-paced industry, this could be a great fit for you.

Pros of Being an MLO:

✔️ High earning potential (commissions).

✔️ Flexible schedule (work independently or for a firm).

✔️ Growing demand in the California real estate market.

✔️ Opportunities to build a personal brand & network.

Challenges to Consider:

❌ Competitive market (requires strong networking).

❌ Commission-based pay (income can fluctuate).

❌ Compliance-heavy industry (requires ongoing education).

If you’re ready to start your journey as an MLO in San Diego, ENROLL HERE, study hard, and get licensed!

Would you like recommendations for mortgage firms hiring in San Diego? Let us know!