Working as a mortgage broker can be incredibly rewarding as you help people secure the funds to purchase the home of their dreams. Although the job has its fair share of challenges, it can be a very satisfying career for those who are interested in working with people and helping them solve problems. Here are some qualifications that are needed to get a Georgia mortgage broker license.
What Does A Mortgage Broker Do?
A mortgage broker serves as an intermediary between a borrower and lending institutions. They work on behalf of their clients – the borrowers – to find the best possible rate and terms on a mortgage.
A broker will take the time needed to assess their client’s credit and income situations to ensure they will be able to repay their mortgage without financial distress. They must also understand the mortgage process thoroughly and be willing to work with a range of lending institutions.
How Can You Become A Mortgage Broker In Georgia?
It is necessary to demonstrate you can meet a range of requirements that ensure you fit the state’s standards for carrying out mortgage broker activities professionally. Outlined below are the qualifications that are required to obtain a Georgia mortgage broker license.
A high school education is considered the minimum education requirement before entering into coursework specifically related to becoming a mortgage broker.
However, certain backgrounds can help make it easier, such as those who are familiar with computers, accounting, sales, economics, real estate, and government regulations.
Mortgage professionals in Georgia must receive a mortgage broker license from the state before they start operating there. The Georgia Department of Banking and Financing is the licensing authority. However, the application process in Georgia, like all states, is carried out through the National Mortgage Licensing System, or NMLS.
To be approved for an NMLS license, applicants must typically complete 20 hours of pre-license training with an approved organization.
This training includes three hours of instruction on federal laws and regulations, three hours devoted to ethics, two hours covering non-traditional mortgage products, and 12 hours of elective classes. The training must have been completed within the three years preceding the application submission.
After this training is complete, applicants are required to pass a two-part SAFE Mortgage Loan Originator Test, answering at least 75 percent of the questions on the exam correctly. Those who fail the exam must wait 30 days before retaking it; those who fail it on their third attempt are required to wait 180 days before taking it again.
Applicants must pay an NMLS processing fee, an application fee, a criminal background check fee, and a credit report fee.
Companies that are applying for a Georgia broker license must provide documents relating to their trade name, organizational chart, business plan, management chart and other information.
Keeping a license current requires taking a certain number of continuing education courses each year. These may be online or in person and can typically be arranged around a broker’s work schedule and other commitments.
The state of Georgia requires that all mortgage brokers who are licensed out of state have a physical location within Georgia’s borders. It may not be a mail delivery location or post office box; it must be a physical site that is staffed by at least one supervised employee.
The Georgia Association of Mortgage Brokers Educational Foundation, or GAMBEF, provides educational and certifying courses for existing mortgage brokers who wish to become mortgage brokers in Georgia.
The full application and checklist of all the required documents for a mortgage broker license can be read on the page dedicated to the state of Georgia in the NMLS Resource Center.
What Can You Do with a Georgia Mortgage Broker License?
A Georgia mortgage broker license allows individuals to carry out the following activities:
- Brokering first, second and reverse mortgages
- High-cost home loans
- Home equity lending and lines of credit
- Third-party mortgage processing
- Mortgage loan modifications
- Foreclosure consulting and rescue
Who Needs a Georgia Mortgage Broker License?
According to the Georgia Residential Mortgage Act, a mortgage broker is any individual, corporation, sole proprietorship, partnership, or limited liability company that directly or indirectly solicits, places, negotiates or processes mortgage loans for others.
Mortgage Broker Surety Bond
Applicants must have an electronic surety bond in the amount of $150,000 that has been furnished and submitted through a surety company which has authorization to carry out business in the state of Georgia.
This serves as a safety net to protect the licensing authorities as well as your customers should you engage in illegal or fraudulent actions(1).
Get In Touch With An Experienced Team Of Mortgage Brokers
The Georgia mortgage brokers at MyLendingPal are experienced in assessing the needs of their clients and helping them find the ideal loan to suit their particular circumstances. You can learn more about the mortgage broker process by getting in touch with the friendly and knowledgeable team at MyLendingPal.