Top 11 Loan Officer Certifications

Certifications are important for loan officers because they demonstrate a commitment to professional development and a mastery of the skills required to perform their job. They also show that a loan officer is knowledgeable in the laws, regulations, and best practices that govern their industry. Employers view certifications as proof that a loan officer has the necessary qualifications to work in this specialized field. Additionally, certifications can often open up new opportunities for career advancement or even higher pay. Finally, having a certification can give loan officers an edge over non-certified competitors when it comes to recruitment and hiring decisions.

The purpose of this article is to review the most beneficial certifications for Loan Officers and explain how they can help advance their careers.

What are Loan Officer Certifications?

Loan Officer Certification is a professional certification program that provides loan officers with the tools and knowledge they need to be successful. It is designed to help individuals increase their skills in areas such as loan origination, underwriting, processing, risk management, and servicing. The certification requires applicants to pass an exam and meet other requirements such as completing continuing education courses.

The benefits of becoming a certified loan officer are numerous. Loan officers who have the certification demonstrate a higher level of professionalism and knowledge, which can lead to increased job opportunities and higher pay rates. They may also be able to work with more clients since they have proven expertise in the field. Having this certification can also help loan officers build trust with clients since it shows them that the individual has been trained properly and has the necessary credentials for handling financial matters responsibly.

Pro Tip: Make sure to stay up-to-date on all of the latest loan officer certifications. Many states have their own requirements for certification, so you should familiarize yourself with these requirements and make sure you meet them in order to stay compliant. Additionally, be sure to take advantage of any continuing education opportunities that may be available to help you stay current on industry changes and regulations.

Related: What does a Loan Officer do?

Top 11 Loan Officer Certifications

Here’s our list of the best certifications available to Loan Officers today.

1. Certified Mortgage Banker (CMB)

Certified Mortgage Banker (CMB) is a professional designation offered by the Mortgage Bankers Association (MBA). It is designed to recognize individuals who have achieved the highest level of professional excellence in the mortgage banking industry. The CMB designation is awarded to those who have demonstrated a commitment to continuing education and have met stringent requirements for experience, knowledge, and ethical standards.

To obtain the CMB designation, an individual must meet certain requirements including:

• Having at least five years of experience in the mortgage banking industry.
• Passing an examination that tests comprehensive knowledge of mortgage banking topics.
• Completing at least 30 hours of approved continuing education courses within three years prior to application.
• Agreeing to adhere to a code of ethics established by the MBA.
• Paying all applicable fees associated with obtaining the CMB designation.

The cost for obtaining the CMB designation varies depending on whether or not you are already an MBA member. For non-members, it costs $550; for members, it costs $450. Additionally, there may be additional costs associated with taking required continuing education courses or other related expenses. The process of obtaining the CMB designation typically takes about six months from start to finish, but this can vary depending on individual circumstances and availability of courses needed for completion.

2. Certified Residential Mortgage Specialist (CRMS)

Certified Residential Mortgage Specialist (CRMS) is a professional designation offered by the National Association of Mortgage Brokers (NAMB). It is designed to recognize and reward mortgage professionals who demonstrate a high level of knowledge, experience, and ethical standards in the residential mortgage industry.

The CRMS program requires completion of a three-day course that covers topics such as federal regulations, loan origination, underwriting, processing, closing and post-closing. The course also includes an exam that must be passed with a score of 70% or higher. The cost for the course is approximately $1,000.

Once the course has been completed and the exam passed, applicants must submit a written application to NAMB along with proof of their education and experience in the mortgage industry. Applicants must also pass a background check and adhere to NAMB’s Code of Ethics before they can be certified as a CRMS.

It typically takes around 4-6 weeks for an applicant to receive their CRMS certification after submitting their application.

3. Certified Mortgage Planning Specialist (CMPS)

Certified Mortgage Planning Specialist (CMPS) is a certification program offered by the The Institute of Certified Mortgage Planners (ICMP). It is designed to provide mortgage professionals with the knowledge and skills needed to provide comprehensive mortgage planning advice to their clients. The CMPS certification requires completion of a course that covers topics such as understanding client needs, analyzing financial information, evaluating loan options, and providing advice on loan selection.

The CMPS course typically takes approximately 40 hours to complete and can be taken online or in person. To become certified, individuals must pass an exam that tests their knowledge of the material covered in the course.

The cost for taking the CMPS course and exam varies depending on the provider. Generally, the cost ranges from $400-$1,200.

4. Certified Home Loan Professional (CHLP)

Certified Home Loan Professional (CHLP) is a professional designation that recognizes individuals who have achieved a high level of expertise in the home loan industry. The CHLP certification is issued by the National Association of Mortgage Brokers (NAMB) and requires successful completion of the NAMB Certified Home Loan Professional Course.

The CHLP course consists of eight modules, covering topics such as mortgage origination, loan products and programs, loan processing, underwriting, closing and post-closing, ethics and compliance, and fair lending. The course also includes an exam to test your knowledge. It typically takes about 40 hours to complete the course and pass the exam.

To become certified as a CHLP you must meet certain eligibility requirements including having at least two years of experience in the mortgage industry or having completed an approved pre-licensing education program. You will also need to be a member of NAMB in good standing.

The cost for the CHLP certification is $395 for members of NAMB or $495 for non-members. This fee covers access to all eight modules, practice exams, study materials, and the final exam.

5. National Association of Mortgage Brokers (NAMB) Certification

The National Association of Mortgage Brokers (NAMB) is a professional organization that provides certification for mortgage brokers. This certification is designed to ensure that mortgage brokers have the knowledge and skills necessary to provide quality services to their clients.

In order to obtain NAMB certification, individuals must first complete an approved education program. The program consists of two courses: the NAMB Principles of Mortgage Origination and the NAMB Principles of Mortgage Servicing. These courses are offered online or in-person and take approximately 10 hours to complete. Once the courses are completed, individuals must pass a final exam with a score of 70% or higher in order to obtain their certification.

The cost for obtaining NAMB certification varies depending on the type of course taken. Online courses typically cost between $150-$200, while in-person classes can range from $400-$500. Additionally, individuals must also pay a one-time fee for their membership in NAMB which is currently $99 per year.

Overall, obtaining NAMB certification requires dedication and commitment as it takes time and money to complete the necessary courses and exams. However, having this certification can be beneficial as it demonstrates an individual’s knowledge and expertise in the field of mortgage brokering which can help them stand out from other professionals in the industry.

6. National Association of Mortgage Professionals (NAMP) Certification

The National Association of Mortgage Professionals (NAMP) is a professional organization that provides certification for mortgage professionals. This certification is designed to demonstrate a high level of knowledge and expertise in the mortgage industry.

To obtain NAMP certification, applicants must pass an exam that covers topics such as loan origination, underwriting, servicing, and compliance. The exam takes approximately three hours to complete and consists of multiple-choice questions. Applicants must also have at least two years of experience in the mortgage industry or have completed an approved educational program.

The cost of obtaining NAMP certification varies depending on whether you are a member or non-member of the organization. For members, the cost is $175; for non-members, it is $225.

Once you have passed the exam and paid the applicable fee, your NAMP certification will be valid for two years before needing to be renewed. Renewal requires completing 20 hours of continuing education courses related to mortgages every two years and paying a renewal fee of $100 for members or $125 for non-members.

7. U.S. Department of Housing and Urban Development (HUD) Certification

The U.S. Department of Housing and Urban Development (HUD) Certification is a program that certifies housing counseling agencies to provide guidance and assistance to individuals, families, and communities who are seeking housing solutions. The HUD Certification process is designed to ensure that the agency meets the highest standards for providing quality housing counseling services.

The HUD Certification process typically takes about 6-8 weeks from start to finish. To become certified, an agency must submit an application package which includes an application form, a signed agreement with HUD, a detailed description of the agency’s housing counseling services, and documentation of the agency’s financial stability. Once the application package is received by HUD, it is reviewed by staff members who determine whether or not the agency meets all of the requirements for certification.

Once an agency has been approved for certification, there is no cost associated with becoming certified. However, agencies must pay annual fees to maintain their certification status. These fees vary depending on the size of the organization and its annual budget.

In order to maintain their certification status, agencies must also meet certain performance standards set forth by HUD. These performance standards include providing quality housing counseling services in accordance with applicable laws and regulations; maintaining accurate records; responding promptly to inquiries; providing timely feedback; and ensuring compliance with applicable laws and regulations regarding fair housing practices.

8. FHA Direct Endorsement Certification

FHA Direct Endorsement Certification (DEC) is a program offered by the Federal Housing Administration (FHA) that allows qualified mortgage lenders to originate, underwrite and certify mortgages for FHA insurance without prior approval from the FHA. This program is designed to streamline the process of obtaining FHA-insured mortgages, making it easier and faster for lenders to offer these loans.

The DEC program requires lenders to meet certain requirements before they can become certified. These include having a minimum net worth of $250,000 and meeting other financial, operational and management criteria set forth by the FHA. Once these criteria are met, lenders must submit an application to the FHA and complete a written examination demonstrating their knowledge of FHA policies and procedures.

The process of becoming certified typically takes about six weeks from start to finish. The cost for certification depends on the size of the lender's portfolio but generally ranges from $2,500-$5,000.

To get started with the DEC program, lenders should contact their local HUD office or visit hud.gov/fhadec for more information on how to apply.

9. VA Loan Originator License

VA Loan Originator License is a license issued by the Department of Veterans Affairs (VA) that allows loan originators to originate VA home loans. The license is required for anyone who wants to originate VA home loans and must be obtained before originating any VA loans.

The process to obtain the license typically takes between 30-45 days and includes completing an application, providing proof of identity, passing a background check, submitting fingerprints, and taking a course approved by the National Mortgage Licensing System (NMLS).

To get started with the application process, applicants must first create an account on the NMLS website. The cost for obtaining the license varies depending on the state and can range from $50-$400.

10. State Licensed Loan Officer License

A State Licensed Loan Officer License is a license issued by the state in which you live that allows you to engage in the business of originating and brokering loans. It is required for anyone who wants to work as a loan officer or broker in most states.

How long does it take to get it? The length of time it takes to obtain a State Licensed Loan Officer License can vary from state to state, but typically takes between 3-6 months.

How to get it? In order to obtain a State Licensed Loan Officer License, you must first complete an approved pre-licensing education course and pass the National Mortgage Licensing System (NMLS) exam. After completing the pre-licensing education course, you will need to apply for your license with the appropriate state agency.

How much does it cost? The cost of obtaining a State Licensed Loan Officer License varies from state to state but typically ranges from $100-$500 depending on the specific requirements for each state.

11. Reverse Mortgage Professional Certification

Reverse Mortgage Professional Certification is a certification program designed to educate and train individuals in the reverse mortgage industry. It is offered by the National Reverse Mortgage Lenders Association (NRMLA) and provides an opportunity for professionals to gain knowledge, understanding and expertise in the reverse mortgage field.

The certification process consists of two parts: a self-study course and a proctored exam. The self-study course includes online modules that cover topics such as loan origination, servicing, marketing and compliance. The proctored exam tests an individual's knowledge of the material covered in the self-study course.

To get certified, applicants must complete both parts of the certification process within 12 months. Applicants must also have at least three years of experience in the reverse mortgage industry or be employed by a NRMLA member company.

The cost of the Reverse Mortgage Professional Certification is $495 USD for NRMLA members or $695 USD for non-members. This fee covers both the self-study course and proctored exam.

Do You Really Need a Loan Officer Certificate?

When it comes to obtaining a loan officer certificate, the answer is not always clear-cut. Depending on where you live, certain states may require that you obtain a license or certificate in order to work as a loan officer. Other states may not require any form of licensing or certification at all.

The first step in determining whether you need a loan officer certificate is to research the laws and regulations of your state. If you live in a state that does not require a license or certificate, then it is likely unnecessary for you to pursue one. However, if your state does require licensing or certification, then obtaining a loan officer certificate may be necessary for you to practice as a loan officer.

Obtaining a loan officer certificate can also be beneficial even if it is not legally required. The training and education associated with becoming certified can provide valuable knowledge and skills related to working as a loan officer. Additionally, having the appropriate certification may give you an edge over other applicants when applying for jobs in the field of finance or banking.

Ultimately, the decision of whether or not to obtain a loan officer certificate will depend on your individual circumstances and goals. It is important to consider carefully the requirements of your state and weigh that against any potential benefits before making your decision.

Related: Loan Officer Resume Examples

FAQs About Loan Officer Certifications

1. What is a loan officer certification?

Answer: A loan officer certification is a professional designation that verifies an individual has met the necessary qualifications to work in the field of mortgage lending. It demonstrates an individual’s knowledge and understanding of the industry, as well as their ability to adhere to relevant laws and regulations.

2. What qualifications do I need to become certified?

Answer: Generally, you must have at least a high school diploma or equivalent and complete 20 hours of education approved by the NMLS (Nationwide Mortgage Licensing System). You may also need to pass an exam administered by the NMLS, depending on your state's requirements.

3. How long does it take to get certified?

Answer: The amount of time it takes to become certified will vary depending on your state's requirements and how quickly you can complete the necessary coursework and exams. On average, it can take anywhere from three weeks to several months.

4. Is certification required in all states?

Answer: No, not all states require certification for loan officers; however, many do require some form of licensing or registration with the NMLS. Check with your state’s Department of Financial Institutions for more information about local requirements for loan officers in your area.

5. How much does certification cost?

Answer: The cost of becoming certified will depend on which courses or exams are required in your state as well as any fees associated with them. Generally, expect to pay around $400-$600 for initial certification or licensure fees; however, this can vary depending on your state and other factors such as whether you choose online or in-person courses/exams.