How To Become a Licensed Mortgage Loan Originator In Utah

There are actually two different kinds of mortgage loan originator licenses in Utah. One is issued by the Division of Real Estate. The second one is issued by the Department of Financial Institutions. Those interested in becoming a mortgage loan officer should be aware of how to qualify for each of these licenses so they can complete the necessary education, testing, and other requirements.

The MLO license from the Department of Financial Institutions is for those who take a mortgage loan application or offer or negotiate terms of such a loan for profit or expected profit. This license is different in that it does not specifically contemplate that the licensee will be an employee of another person or company.

The mortgage loan originator license from the Division of Real Estate is for employees of another person or company who offer or accept to offer mortgage loan applications for compensation. So this must be a person who gets a salary or other income based on work as an employee.

The DFI license for mortgage loan originators requires a 20-hour course and a combination of passing scores on some mortgage exams. This can be the National and State SAFE test, National and Stand-alone UST SAFE test, or the National Test Component with Uniform State Content. Fees are $230 for the license, and applicants who have not already done so also pay smaller fees of about $15 and $36 for a credit report and background check.

The DFI license holder does not need an employer to get a license. However, in exchange for that, a surety bond is required. It’s $12,500 for volume up to $5 million, 25K for 5 to 15 million, and 50K for over 15 million.

Total fees for the Division of Real Estate license are about $200, which is a little cheaper than the other one. And the other major difference with this second type of license is that you must have a sponsoring employer before your application will be activated even if you are accepted. I found some discrepancies in the checklist for this license. It says 20 hours of education are required, but then it also says 15 hours. Since the other license requires 20 and you may want to switch to that license to run your own business, it is probably better to just complete 20 hours, anyway. So taking a 20-hour course has that benefit.

Both of the Division of Real Estate and DFI Utah mortgage loan originators use the MU4 form when applying through the NMLS system. Use the following instructions:

For some reason, I was not able to find any Utah courses in the NMLS catalog. However, some of them may still qualify you for a license. Make sure you ask the course provider about this before signing up.

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