What Is The Most Challenging Part About Becoming A Loan Signing Agent
Becoming a signing agent is incredibly easy. Becoming a Great signing agent is challenging because there is a ton of information to learn. Knowing how to complete an RTC or 1033 correctly, let alone what they are, how about the 4506-T?
The best part is that 90% of the documents in each closing are the same. Once you have it down, it is almost like being on auto-pilot.
How Much Can You Make As A Signing Agent
Once youve become a loan signing agent, your next problem is bringing jobs in.
If youre doing this as a side hustle, the amount you make depends large on where youre getting the jobs, as I explained just before this section.
Loan signing agents are paid much higher than notaries because everything they do prevent the mortgage industry from spending a lot more money if signatories make mistakes on the documents, delay funding, and other devastating results, such as borrower losing out on a home hes trying to buy, escrow commissions being canceled, or mortgage company getting fired from a project.
Borrowers making mistakes on loan documents can be costly to all parties involved, so loan signing agents are paid extra to ensure this doesnt happen.
- Those starting out make $50 to $75 per document assisted
- Signing agents who have been on the business for years can earn from $150 to $250
- If youre doing this part time and commit to only 1 job a day, you can earn an extra $250 every 5-day week and up to $1,000 a month.
- If this is going to be your full time job and you commit to 5 or 10 signings daily, thats almost $2k a week and around $7500 a month.
How crazy is that?
Now lets look at the demand whats the job outlook as a loan signing agent look like?
Salary And Job Outlook For A Mortgage Loan Officer
Indeed does not have salary data specifically for mortgage loan officers, so here are two similar job titles and their national average base salaries to give you an idea of the earning potential for this role:
- Mortgage loan originator:$162,095 per year. The average commission for this role is $27,600 per year.
- Loan officer:$169,030 per year. The average commission for this role is $24,000 per year.
According to the Bureau of Labor Statistics, the employment of loan officers is projected to grow by 3% between 2019 and 2029, a rate about as fast as the average for all jobs.
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Complete Your California Nmls Pre
There are two ways of qualifying for the NMLS license
Without a California Real Estate License – California Department of Financial Protection and Innovation
To become a California-licensed MLO you’ll need to complete the required 20-hour NMLS S.A.F.E pre-licensing course along with additional course work required by either of California state licensing agencies.
NMLS SAFE Mortgage License Training – Required
All states require 20 hours of mortgage education from an NMLS approved mortgage school. If you’re seeking a new Mortgage License you need to enroll in a comprehensive 20 Hour SAFE course in addition to the state-required education. Our course packages include both and are available to all states.
DRE License Overview
The California Department of Real Estate issues MLO endorsements to licensed real estate agents. Pursuing a DRE endorsed license will give you the most career flexibility, however, you will need to complete and maintain the required Real Estate education requirements.
- Requires a valid California Real Estate License.
- Requires additional Real Estate Education.
- Requires a Sponsorship from a DRE licensed Employer.
How To Get Work As A Loan Signing Agent
We contract with title companies and signing services. Starting out, we all work with signing services to get experience. I got a list of services from the course and literally contacted each and every one. That was a tedious process that took about a month working on it a few hours a day, but definitely critical to getting started.
Now, I get phone calls, texts, and emails every single day asking me to accept assignments. I work in a 70-mile radius of my house .
When an assignment is offered, if I accept and they choose me to complete it, I contact the borrower to confirm time and location, wait for documents, then print them when they come in, show up and complete the assignment. Sometimes we have to scan in copies, but always ship them via prepaid FedEx or UPS labels provided by the title company.
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Licenses Certifications And Registrations
Mortgage loan officers must have a Mortgage Loan Originator license. To become licensed, they must complete prelicensing courses, pass a national exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements. Check your state licensing agency website for more information.
Several banking associations, including the American Bankers Association and the Mortgage Bankers Association, as well as a number of schools, offer courses, training programs, or certifications for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidates employment opportunities.
How To Be A Notary Signing Agent
A notary signing agent is an independent contractor who is specially trained to handle and notarize mortgage documents, and also ensures that they are returned on time for processing.
As a loan signing agent, you can make anywhere around $50 to $250 per signing. The variation is simple because there may be or may not be an agency involved that acts as a middleman that finds loan signing opportunities for loan signing agents. However, the average amount you can make from notarize a loan document is $100, which is a fair amount.
If you want to be a loan signing agent, then this article is meant for you. Go lets get started.
STEP 1: Do you qualify to be a notary signing agent?
The first step to become a notary signing agent is to find out whether you can be a notary signing agent in your state. Each state in the United States of America has its ruling as to who can become a notary signing agent. Some states only allow attorneys to be notary signing agents. Find out if your state allows you to be a notary signing agent here.
If your state allows you to be a notary signing agent, then great.
STEP 2: Become a notary
Becoming a notary is the next step in your journey to becoming a notary signing agent. Again becoming a notary in each state has its rules. While some states may require you to take a test or class, others may require you to do both before you get commissioned as a notary.
STEP 3: Become a notary signing agent
STEP 4: Get more trainings on loan signing
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What Does The Lo Job Field Look Like
According to the Bureau of Labor Statistics, loan officer jobs will increase at a slightly faster rate compared to the average job field. It is expected that jobs for loan officers will increase by about 11% between 2016 and 2026. This may be due to the economy continuing to improve.
However, many people see increasing levels of automation as a possible threat to the job industry for loan officers. Embracing technological advances from the outset can be a job saver as our culture turns more toward computerized processes.
Top 5 Things To Know About Becoming A Mortgage Loan Officer
Becoming a mortgage loan officer, or MLO, specifically with an independent mortgage broker in the wholesale channel, is a promising career path that offers flexibility, unlimited earning potential, and growth. Mortgage loan officers or mortgage loan originators are representatives of independent mortgage brokerages that evaluate and originate residential home loan approvals for borrowers and often facilitate the process through approval and closing.
Once you know what a mortgage loan officer does, you may have more detailed questions about the path to becoming one. If youre interested in joining the wholesale mortgage industry, read on for answers to some frequently asked questions on becoming and excelling as a mortgage loan officer.
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After You Get Licensure
Once you receive your license, you can begin work as a home loan originator. Some MLOs work independently, but newbies often prefer to begin with an established business that has an existing client base, such as a bank, mortgage lending institution, or credit union.
With all the bureaucracy involved in the licensure process, it is important to keep your focus on the goal you had in mind when you first started looking into how to become a loan officer helping people move into their dream homes.
Buying property can be a complicated and stressful process for your average person, but a qualified and supportive MLO can make the experience easier, allowing homebuyers to enjoy their investment with the knowledge they have secured the best home loan possible.
The work doesn’t end here, though. It is important that MLOs keep up with professional development to keep their license and stay current with mortgage lending practices.
Loan Officer Career Advancement
- Its generally a lateral move from one shop to another based on compensation structure
- Other than going from say a junior loan officer to a senior loan officer
- Most LOs just switch companies to get better commissions
- Though it might be possible to open your own shop or become a sales manager as well
Loan officers generally stay in one place and dont advance internally within a company.
They may change their status to Senior Loan Officer, but usually it means very little aside from the fact that theyve been around a little longer than typical loan officers. There could be a bump in compensation levels though.
More likely, loan officers can advance externally if recruited by other companies paying higher commissions, or even a base salary. Or a mega bonus to jump ship.
Those who are able to create and manage a large book of business may wind up with a lot of suitors, and its not out of the realm of possibilities to be offered a six-figure bonus to change companies.
Many loan officers also apply for a brokers license as a means for advancement. And eventually employ their own loan officers, and take a cut off everything they earn.
In that sense, there are a variety of advancement opportunities for successful individuals. Its also possible to shift to the operations side of things if you turn out to be not much of a salesperson.
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Mortgage Loan Officer Licensure And Certification
Whether you graduate with a bachelors degree or go the working route, you must obtain a mortgage loan originator license to become a fully qualified mortgage loan officer. To get your MLO, youll have to complete 20 hours of pre-licensure education and pass the Nationwide Multistate Licensing System & Registry exam.
You must also submit to a background and credit check and renew your MLO license each year by following the licensure requirements in your state.
While its not required, you may want to obtain a mortgage loan officer certification to propel yourself to the top of a prospective employers list. Several postsecondary schools and banking associations, such as the American Bankers Association and the Mortgage Bankers Association, offer courses, training programs, and certifications.
How Do I Become A Mortgage Loan Officer
To become a licensed loan officer, you’ll need to be registered with the National Mortgage Licensing System and Registry , complete 20 hours of pre-licensure education courses, and pass the NMLS mortgage license exam, amongst other requirements determined by your state.
Once youve fulfilled the requirements for licensure, expertise is often established on the job. Joining an independent mortgage broker shop is a great way to set yourself up for success. If youre new to the industry, you may also look to be hired as a loan officer assistant, or LOA, to learn origination processes and earn valuable experience before actually completing your license requirements.
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Mortgage Loan Officer Education Requirements
Since mortgage loan officers analyze the finances and credit of potential borrowers, a good place to start is a bachelors degree in business or finance. During your coursework, youll learn some accounting skills, including the ability to read financial statements.
If you need help getting started, check out these mortgage loan officer scholarships. They can help to cover some of the costs of your education so that you can focus on preparing for your career.
You dont always need a bachelors degree to land a job as a mortgage loan officer. Some banks will hire candidates who have several years of hands-on banking, customer service, or sales experience and are willing to learn on the job.
Are California Broker Licenses And Loan Originator Licenses The Same
Mortgage loan originators and mortgage brokers are commonly confused terms. As such, many people who are searching for a California broker license are actually looking for a loan originator or loan officer license. So whats the difference? Generally speaking, a mortgage broker is a company that employs a team of loan officers. Loan officers originate mortgage loans for new home buyers. Therefore, the correct license for a loan officer in California would be one of the options listed above, depending on which division your employer works under.
Additional Questions?
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Loan Officer Salary Can Vary Widely
- Similar to a real estate agents salary, a loan officers take home pay can range dramatically
- It all depends on how much you sell/close in a given year
- If youre a top loan officer, you can make a ton of money
- If youre just an average or underperforming LO, expect comparably lower salaries
Wondering how much a loan officer makes an hour? Or what the average mortgage loan officer salary is?
Well, take note that most loan officers do not receive a base salary, only commission, so they are paid for performance. Sales performance.
The median income for a loan officer in the United States was $63,650 in 2016, according to the Bureau of Labor Statistics . That works out to an hourly wage of $30.60 per hour, which isnt terrible by any stretch.
My assumption is that the number wont change a great deal in 2017 or beyond, not that I would focus on the numbers from the Bureau of Labor Statistics anyway.
A better gauge might be the quarterly reports from a company called LBA Ware, which has a ton of data on loan officer compensation.
They said the average LO produced 51% more in volume during Q3 2020 versus $1.7M per month in the same period in 2019.
And per-loan commission was 106 basis points in the third quarter of 2020, meaning the average LO made over $27,000 per month.
That works out to over $300,000 annually if theyre able to keep that up consistently.
If you break that down as an hourly wage, it could be very high if loan volume is solid and efficiency is high as well .
How Do I Become A Loan Officer
Mortgage Loan Officers have to be licensed by the Nationwide Mortgage Licensing System and Registry to practice in the U.S.
NMLS is an online platform that processes initial MLO applications and handles ongoing compliance requirements.
You might be asking yourself, Is it hard to become a loan officer? The pre-licensing education is actually pretty structured and you can ace it with the right prep.
Heres a quick visual of the process:
There are plenty of resources at your fingertips like the MLO Handbook, including online MLO schools that provide NMLS-certified loan officer courses.
In this section, we break down the 7 steps to get your loan officer license.
1. Get a Unique NMLS ID
You have to be at least 18 years of age to become a licensed MLO. You can get started by applying for a unique NMLS number online.
Once you get your license, it will be connected to this unique ID as a way for your activities as a mortgage officer to be monitored and regulated by the NMLS. This ID must also appear alongside any ads that promote your services as Mortgage Loan Originator.
2. Complete the Pre-licensing 20-Hour Course
Aspiring MLOs will have to complete 20 hours of pre-licensing training from an NMLS-approved loan officer school to practice.
The 20-hour SAFE course goes over:
- Federal law and regulations
- Fair lending practices
- Non-traditional lending practices
- Undefined education electives
3. Do the Extra Prep for the NMLS Test
4. Pass the NMLS SAFE Test
6. Get Sponsored!
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How Are Notary Signing Agents Paid
Unlike other jobs, a notary signing agent doesnt get a monthly or bi-weekly wage. You will get paid for each document that you notarize. Because of this, it is entirely up to you to determine how much money you are going to make.
Most notary signing agents make anywhere from $75 to $200 per loan signing. This will be paid by either the borrower or the lender depending on the arrangement they have agreed on. Most loan signings take about an hour, so this is easy to calculate for your hourly rate.
The rate is usually set by the escrow company that is breaking down the closing costs of the transaction. Your fee will be its own line item in the closing statement, so you can know exactly what it is. This is one of the ways you can pick and choose which clients you want to work with.
If you are working for a loan signing service, you will split the fee with them. Loan signing services are umbrella companies that a notary signing agent will work under. In this case, your fee will be anywhere from $75 to $125 with their fee taken out.
As with many freelancing jobs, the rate will always be different depending on the circumstances. It will be completely up to you to determine what jobs you want to take on. This is something that you will learn as you get more experience in the industry.
