How to Become a Loan Officer in Colorado
Thinking about acquiring a Mortgage Loan Originator (MLO) license in the state of Colorado?
This is a great career opportunity and a very rewarding one at that.
Before acquiring your license, you need to learn the essentials on how to become a loan officer in Colorado.
Here, we go over the training, educational requirements, and sponsorship requirements. We simplify the process, and make sure you sidestep any potential mishaps.
It does take a little time and effort, but by the end of this, you should have all the knowledge you need to go down this career path with confidence.
Step 1: Create an NMLS Account
As with all 50 states, your MLO license in the state of Colorado will be granted through the National Mortgage Licensing System (NMLS).
Visit NMLS’s online portal to create an account.
Upon paying for your enrollment (mandatory to be able to undergo the loan officer exam), you will be assigned a unique NMLS ID.
Step 2: Undergo Pre-licensing Education
Colorado-licensed loan officers must mandatorily undergo a pre-licensing program that spans 20 hours. This program covers the essentials, and also includes two hours of Colorado state law content.
The Division of Regulatory Agencies (DORA), the official licensing body in the state of Colorado, may require you to complete additional coursework on an as-needed basis.
Remember, your 20 hours of training must be completed in an NMLS-approved mortgage school.
Look for approved courses near you to avoid enrolling yourself in a school that is not NMLS recognized. That puts unnecessary barriers in your journey to becoming a Colorado loan officer.
We recommend LoanOfficerSchool.com
Loan officer school is an online only loan officer education school. They have some good reviews on record. Probably worth taking a look.
Step 3: Take the MLO Certification Test
Now that you’ve completed your pre-licensing education, it’s time to put your knowledge to the test!
Colorado MLOs must attain passing scores in either one of these two examinations:
The MLO National Test Component
This consists of 125 questions that test your knowledge of federal mortgage regulations, ethical standards in the industry, MLO activities, and general loan officer knowledge.
OR
The MLO National Test Component With Uniform State Content
You can opt to do the Uniform State Content (USC) test along with the above, although USC is not mandatory in the state of Colorado to become MLO-certified.
USC tests your knowledge of Colorado law regulations, licensing laws, and compliance standards.
These examinations are easy enough to pass, provided you undergo the required training from an NMLS certified school.
Below is a link to the MLO handbook to access a few sample test questions:
https://mortgage.nationwidelicensingsystem.org/profreq/testing/Documents/MLO%20Handbook.pdf
Do you want to learn more about becoming a loan officer?
Check out our comprehensive guide on How to Become a Loan Officer in 7 simple steps.
