Top 11 Loan Originator Certifications

Certifications for loan originators are important for many reasons. First, they demonstrate a level of knowledge and expertise that can help a loan originator stand out in the job market. By having certifications, potential employers can feel confident that the loan originator is knowledgeable and capable of performing the job correctly. Furthermore, certifications give loan originators an edge over other applicants who may not have them. Finally, certifications show potential employers that the loan originator has taken the initiative to gain additional skills and qualifications which could prove beneficial to their organization.

The purpose of this article is to review some of the top certifications for Loan Originators and explain how they can help enhance a loan originator's career.

What are Loan Originator Certifications?

Loan Originator Certification is a designation given to individuals who have successfully completed the educational requirements and passed the licensing exams for the mortgage loan originator profession. This certification is required by law in most states, and it demonstrates that an individual has met certain standards of knowledge and expertise in order to serve as a loan originator. By obtaining this certification, loan originators can show potential customers that they have the skills and qualifications necessary to provide quality customer service while also providing assurance that they are knowledgeable about all relevant laws and regulations pertaining to the industry.

Having a Loan Originator Certification helps loan originators stand out from other loan officers and gives them credibility with potential customers. It shows that they are competent professionals who understand their duties and responsibilities as well as any state or federal regulations governing their profession. It also helps them build trust with customers since it proves that they have been properly trained and vetted for their job. Additionally, having this certification may open up more opportunities for promotion within the company or even allow them to become more involved in industry groups or organizations related to mortgage lending.

Pro Tip: When considering loan originator certification, be sure to research the requirements of both state and federal regulations. Additionally, make sure you understand the qualifications necessary to become a certified loan originator and if there are any continuing education requirements. Taking the time to thoroughly research these topics can help ensure you meet all necessary criteria for certification.

Related: What does a Loan Originator do?

Top 11 Loan Originator Certifications

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

1. Certified Mortgage Banker (CMB)

Certified Mortgage Banker (CMB) is a professional designation awarded by the Mortgage Bankers Association (MBA). The CMB designation recognizes mortgage professionals who have demonstrated a high level of knowledge, experience and success in the mortgage banking industry.

To obtain the CMB designation, individuals must first meet certain eligibility requirements. These include having at least three years of experience in the mortgage banking industry and completing an MBA-approved course on mortgage banking topics. After meeting these requirements, applicants must pass a comprehensive exam administered by the MBA.

The exam consists of multiple-choice questions covering topics such as loan origination, underwriting, servicing, secondary market activities and regulatory compliance. The test takes approximately four hours to complete and costs $395 for MBA members or $495 for non-members. Once an individual has passed the exam, they will receive their CMB designation and be recognized as a Certified Mortgage Banker.

2. Certified Mortgage Professional (CMP)

Certified Mortgage Professional (CMP) is a professional designation offered by the Mortgage Bankers Association of America (MBA). It recognizes individuals who have achieved a high level of knowledge and expertise in the mortgage industry. The CMP credential is designed to demonstrate that an individual has a comprehensive understanding of all aspects of the mortgage industry, including origination, underwriting, servicing, compliance, technology, and more.

The CMP certification process typically takes about four months to complete. To obtain the CMP designation, applicants must first meet certain eligibility requirements. These include having at least three years of experience in the mortgage industry and completing a minimum number of hours of continuing education courses related to the mortgage industry. After meeting these requirements, applicants must pass an online exam administered by the MBA.

The cost for obtaining the CMP designation varies depending on whether you are already a member of the MBA or not. For non-members, it costs $595 to take the exam and receive your certificate; for members it costs $395. Additionally, there are fees associated with taking any required continuing education courses prior to taking the exam.

3. Certified Mortgage Planner (CMP)

Certified Mortgage Planner (CMP) is a professional designation awarded by the National Association of Certified Mortgage Planners (NACMP). It is designed to recognize and reward mortgage professionals who have demonstrated a commitment to ethical and professional practices, as well as an understanding of the complexities of the mortgage industry. The CMP designation requires individuals to complete an extensive course of study, pass a comprehensive exam, and maintain their certification through continuing education.

To become a CMP, you must first meet certain eligibility requirements. These include having at least two years of experience in the mortgage industry, being employed in the industry for at least one year, and completing NACMP's required coursework. Once these requirements are met, you can then apply for the CMP designation.

The application process includes submitting an application form along with supporting documents such as transcripts from your educational background and proof of experience in the mortgage industry. You will also need to submit payment for the application fee ($150). After your application has been approved by NACMP, you will be eligible to take the CMP Exam.

The CMP Exam consists of 100 multiple choice questions covering topics such as regulatory compliance, loan origination processes, loan products and services, risk management strategies, financial analysis techniques, and more. You must answer at least 70% of these questions correctly in order to pass the exam and receive your CMP designation.

Once you have successfully passed the exam, you will be required to pay a $300 annual fee in order to maintain your certification status. This fee covers access to continuing education courses offered by NACMP as well as other benefits associated with being a Certified Mortgage Planner.

Overall, becoming a Certified Mortgage Planner is an important step towards advancing your career in the mortgage industry. It demonstrates that you have taken the time and effort necessary to understand all aspects of this complex field and that you are committed to providing quality service for clients seeking home financing solutions.

4. Certified Residential Mortgage Specialist (CRMS)

Certified Residential Mortgage Specialist (CRMS) is a professional designation for mortgage professionals who specialize in residential mortgage lending. The CRMS designation is awarded by the National Association of Mortgage Brokers (NAMB) to those individuals who have successfully completed the educational requirements and passed the CRMS exam.

The CRMS certification requires completion of a comprehensive course that covers all aspects of residential mortgage lending, including loan origination, processing, underwriting, closing, and post-closing. The course also covers federal and state regulations related to residential mortgage lending, as well as ethics and best practices. To become certified, applicants must complete the course and pass the NAMB-administered CRMS exam with a score of at least 80%.

The entire process typically takes between three to six months to complete depending on an individual’s availability and dedication. In order to get started on the path towards becoming a Certified Residential Mortgage Specialist (CRMS), individuals must first register with NAMB for their CRMS certification program. Upon registration, they will receive access to the online study materials which include practice exams and other resources needed for successful completion of the program.

The cost for obtaining your CRMS certification varies depending on where you are located; however, it typically ranges from $500 - $1,000 USD. This cost includes course materials such as textbooks and practice exams as well as registration fees for taking the exam.

5. National Association of Mortgage Brokers Certification (NAMB-C)

The National Association of Mortgage Brokers Certification (NAMB-C) is a professional certification program for mortgage brokers. It is designed to ensure that mortgage brokers have the knowledge and skills necessary to provide quality service to their clients. The certification is valid for two years, after which time it must be renewed.

In order to become certified, applicants must meet certain eligibility requirements, including having at least three years of experience in the mortgage industry and completing an approved NAMB-C course. Once these criteria are met, applicants can take the NAMB-C exam, which covers topics such as loan origination process, federal law compliance, ethics and consumer protection.

The cost of the certification depends on whether you choose to take the exam online or in person. The online version costs $199 while the in-person version costs $249. To maintain your certification, you must complete continuing education courses every two years; these courses cost between $50-$100 each depending on the provider.

6. National Credit Union Administration Loan Originator Certification

The National Credit Union Administration (NCUA) Loan Originator Certification is a certification program designed to ensure that loan originators working in the credit union industry have the knowledge and skills necessary to provide quality service to their members. The certification program is administered by the NCUA, which is an independent federal agency that regulates and supervises credit unions.

The certification process consists of three parts: an online exam, a background check, and a continuing education requirement. The online exam tests a loan originator’s knowledge of credit union regulations and practices as well as their ability to analyze financial data. The background check requires applicants to submit personal information such as past employment history, criminal records, and credit reports. Finally, all certified loan originators must complete at least 8 hours of continuing education each year in order to maintain their certification status.

To obtain the NCUA Loan Originator Certification, individuals must first register with the NCUA’s Loan Originator Registry. Registration requires a one-time fee of $50 and takes approximately two weeks for processing. Once registered, applicants can then take the online exam which costs $75 per attempt. After passing the exam, applicants will need to submit their background check information and pay an additional fee of $25 for processing.

Once all requirements are met and approved by the NCUA, individuals will be granted their NCUA Loan Originator Certification which is valid for two years from the date it was issued.

7. American Bankers Association Accredited Loan Originator

The American Bankers Association Accredited Loan Originator (ABA ALO) certification is a professional designation for loan originators who meet the standards of knowledge and experience set by the ABA. It signifies that the holder has achieved a higher level of expertise in loan origination than those without the certification.

It typically takes between 6-12 months to complete the requirements for this certification, depending on how quickly you can complete the coursework and exams. To get certified, applicants must have at least two years of experience in loan origination, successfully pass an exam, and complete an approved training program. The cost of obtaining this certification varies, but it is typically around $1,000 or more.

To maintain the ABA ALO certification, holders must take continuing education courses every two years. This helps ensure that they stay up to date with industry trends and regulations.

8. Fannie Mae HomeReady® Loan Originator Certification

Fannie Mae HomeReady® Loan Originator Certification is a certification program designed to help loan originators become knowledgeable about the Fannie Mae HomeReady® mortgage product. This certification program is available to all loan originators who meet the eligibility criteria, and it provides them with an understanding of the features and benefits of this mortgage product.

The certification process takes approximately 60 minutes to complete and consists of three parts: an online assessment, a web-based tutorial, and a final exam. The online assessment will test your knowledge of Fannie Mae HomeReady® mortgage products, while the web-based tutorial will provide you with more in-depth information about the product. Finally, you must pass a final exam in order to receive your certification.

In order to get certified as a Fannie Mae HomeReady® Loan Originator, you must first register for the program through their website. Once registered, you will be able to access all of the materials necessary for completion of the certification process.

The cost of the Fannie Mae HomeReady® Loan Originator Certification is $99 USD per person. This fee covers all materials necessary for completion of the certification process, including access to the online assessment, web-based tutorial, and final exam.

9. Freddie Mac Home Possible® Loan Originator Certification

Freddie Mac Home Possible® Loan Originator Certification is a certification program designed to help loan originators understand the features and benefits of Freddie Mac's Home Possible® mortgage products. The certification requires loan originators to complete an online course and pass a comprehensive exam.

The online course takes approximately four hours to complete, and covers topics such as borrower eligibility, product features, underwriting guidelines, pricing strategies, and more. After completing the course, loan originators must pass a comprehensive exam with a score of 70% or higher in order to receive their certification.

The cost for the Freddie Mac Home Possible® Loan Originator Certification is $99 per person. This fee includes access to the online course materials and the exam.

Once certified, loan originators will be able to confidently offer Freddie Mac's Home Possible® mortgage products to borrowers who are looking for affordable financing options.

10. VA Lender Approval Program

The VA Lender Approval Program is a program designed to help veterans and service members obtain financing for their home purchase. The program is administered by the Department of Veterans Affairs (VA) and allows approved lenders to offer VA-backed loans to qualified veterans and service members.

In order to be eligible for the VA Lender Approval Program, lenders must meet certain criteria set forth by the VA. This includes having a valid license from their state’s banking department, demonstrating financial stability, and meeting other requirements related to loan origination and servicing.

It typically takes several weeks for a lender to receive approval through the program. During this time, lenders must submit an application that includes detailed information about their business operations as well as proof of their financial stability. Once approved, lenders can begin offering VA-backed loans to qualified borrowers.

There is no cost associated with applying for or receiving approval through the VA Lender Approval Program. However, lenders may incur costs in order to meet the requirements necessary for approval.

11. US Department of Housing and Urban Development Approved Loan Originator

The US Department of Housing and Urban Development (HUD) Approved Loan Originator is a certification for loan originators who work with HUD-insured mortgages. This certification is required for all loan originators who originate, process, or close loans that are insured by the Federal Housing Administration (FHA). The HUD Approved Loan Originator program ensures that loan originators have the knowledge and experience to properly originate and process FHA-insured loans.

It typically takes around two weeks to get the HUD Approved Loan Originator certification once all of the necessary paperwork has been completed and submitted. To become certified, applicants must first submit an application to HUD, which includes a background check and proof of licensure. Once approved, applicants must then complete a training course on FHA guidelines and regulations.

The cost of becoming a HUD Approved Loan Originator varies depending on the type of training course taken. Generally speaking, courses range in price from $150 to $500. Additionally, there may be other fees associated with obtaining this certification such as background check fees or state licensing fees.

Do You Really Need a Loan Originator Certificate?

The answer to this question is highly dependent on the individual’s situation. Generally, a loan originator certificate is necessary if you are looking to become a loan officer, broker, or other professional in the lending industry. The certificate will provide proof that you have received formal training and possess the knowledge and skills necessary to perform in such a role.

In many states, having a loan originator certificate is legally required for those who work as loan officers or brokers. Even if it isn’t legally required in your state, it may be beneficial to have one as it can demonstrate your qualifications and commitment to the profession. A loan originator certificate can also help you stand out from other applicants when applying for jobs in the industry.

Ultimately, whether or not you need a loan originator certificate depends on what type of career path you are pursuing and the requirements of your particular state. If you are considering becoming a loan officer, broker, or another professional in the lending industry, then obtaining a loan originator certificate could be beneficial for your career prospects.

Related: Loan Originator Resume Examples

FAQs About Loan Originator Certifications

1. What is a Loan Originator Certification?

Answer: A Loan Originator Certification is a government-mandated program that requires loan originators to receive specific training and pass an exam to be certified. The certification ensures that loan originators are knowledgeable about the rules, regulations, and laws governing the mortgage industry.

2. How do I get a Loan Originator Certification?

Answer: To obtain a Loan Originator Certification, you must complete pre-licensing education requirements and pass the National Mortgage Licensing System (NMLS) exam. You can find more information on the NMLS website.

3. Is there an expiration date for Loan Originator Certifications?

Answer: Yes, most certifications have an expiration date of three years from the date of issue. It is important to renew your certification in order to remain compliant with all relevant regulations and laws governing mortgage origination activities.

4. Do I need additional qualifications or experience to become certified as a loan originator?

Answer: Yes, many states require loan originators to have at least two years of experience working in the mortgage industry or related field prior to receiving their certification. Additionally, some states may require additional qualifications such as background checks or continuing education courses beyond what is required by the NMLS exam.

5. Are there any fees associated with becoming certified as a loan originator?

Answer: Yes, there are fees associated with becoming certified as a loan originator including application fees for both the NMLS exam and pre-licensing education courses, background check fees, continuing education course fees, and renewal fees every three years when your certification expires.