Calling all aspiring mortgage loan officers in Alaska…
Are you not sure how to get started?
Maybe you’re confused about your education requirements…
Or maybe it’s your licensing exam…
We have all the answers for your here.
Today, we’re going to give you a complete 2023 guide on how to be a mortgage loan officer (MLO) in Alaska.
We won’t skip any step.
So let’s get started!
How to Become an MLO in Alaska – The 6 Steps to Success
Here are the 6 steps to becoming an MLO in Alaska:
- Request an NMLS account
- Complete an NMLS-approved pre-licensure education
- Pass the SAFE MLO exam
- Submit a credit report and criminal background check
- Secure your employer sponsorship
- Complete the NMLS application
Let’s walk you through the steps one by one.
Step 1: Request an NMLS Account
All MLO transactions will be done through the Nationwide Mortgage Licensing System (NMLS).
So it’s no wonder that the first step is to make an account with them.
Here’s how to do that:
- Visit the NMLS login page
- Request an account (if you don’t already have one)
- Select the type of account you need (if you’re doing it by yourself, then this means an individual account)
- Follow the online prompts
- When your request is approved, receive your unique ID number (it’s important to keep this)
Step 2: Complete NMLS-Approved Pre-Licensure Education
In Alaska, you MUST complete at least 20 hours of MLO pre-licensure coursework to meet the education requirements.
The course requirements are set by the Department of Commerce, Community, and Economic Development.
Are there any specific topics you should learn?
Yes, the topics are as follows:
- 3 hours of Federal Law
- 3 hours of Ethics
- 2 hours of Non-Traditional Mortgage Lending
- 12 hours of general electives
Another important thing — you need to make sure the course is NMLS-approved.
If you’re unsure where to go, here are some approved providers that we recommend:
You can also find a complete list of all approved providers here.
Step 3: Pass the SAFE MLO Exam
It’s time to put your knowledge to the test.
But first, you need to register for the SAFE MLO exam.
Here’s how to do that:
- Go to the NMLS website and login into your account
- While there, fill up a test enrollment window for your exam
- Pay the exam fee of $110
- Accept the Candidate Agreement and other agreements
Once you’re registered, you can schedule your SAFE MLO exam with Prometric. Here, you can decide if you want to take the exam online or in person.
Either way, you will have to answer 120 questions in 190 minutes (that’s around 3 hours). Although the whole process will take almost 4 hours.
To pass, you need a score of at least 75%.
Also, you’re only being scored for 115 questions. The remaining 5 are just pre-test questions.
Step 4: Submit a Credit Report and Criminal Background Check
Once you pass the exam, you can start working on your MLO license application.
You can do the following steps simultaneously.
But let’s start with your credit report and criminal background check.
Here’s how to authorize a credit report check:
- Go to your NMLS account
- Click on the “Filing” section
- Click “Credit Report Request”
- Then select the “Invidiaul Verification IDV” link
- Review the information
- Click attest
- And submit authorization
- You will also need to pay a credit report fee of $15
As for your criminal background check, here’s what to do:
- Login to your NMLS account.
- Head to the Filing section
- Click on the Criminal Background Check tab.
- Complete the fields and click attest to authorize a criminal background check
- You will need to pay the fee of $36.25
You will also need to submit fingerprints.
- Schedule a fingerprinting appointment.
- Get fingerprinted.
- Have it submitted to the NMLS.
Step 5: Secure Your Employer Sponsorship
Go out and look for an Alaskan Mortgage Broker/Lender to work for.
We advise you to not rush this step.
I mean, this is the company you’re working for — you need to make sure they fit your needs and preferences.
And when you do find the perfect match, have them submit a sponsorship request. If approved, then your MLO license will have an “active” status.
If not yet approved, your MLO license will have a “pending” status.
Step 6: Complete the NMLS Application
Complete the NMLS application for an MLO license by filling up and submitting Individual Form (MU4).
You can find this form in your NMLS account.
Here, you have to check if everything is submitted — your education requirements, your exam passing score, your credit report and criminal background check, and your employer sponsorship.
You also have to answer disclosure questions — and submit any documents that may be necessary (if you answer yes to any of the questions).
Moreover, you need to pay the following fees:
- NMLS initial fee – $30
- Alaska application fee – $250 (includes $50 Suety Fund fee)
- Alaska registration/lincese fee – $300
When Form MU4 is completed and submitted, you’re now an official mortgage loan officer.
You did it!
FAQs About Mortgage Loan Officers (MLO) in Alaska
Got some questions?
Let’s answer a few of the most frequently asked ones.
What Does a Mortgage Loan Officer (MLO) Do?
A Mortgage Loan Officer or Originator helps a prospective borrower get the right mortgage for a real estate transaction.
The MLO works with the borrower from application and approval to the closing process.
MLOs may work for a direct lender or as a mortgage broker. Mortgage brokers partner with several lenders to find loan options that best align with a borrower’s finance goals, budget, and preferred loan terms.
How Much Do Mortgage Loan Officers Make in Alaska?
On average, MLOs in Alaska make approximately $66,000 per year as of October 2022. The 75th percentile of earners makes above $99,000, while the bottom 25th makes under $29,000.
Top earners can earn more than $140,000 in Alaska.
What is the Market Like for Mortgage Loan Officers in Alaska?
Alaska is currently experiencing a seller’s market, which means there is plenty of opportunity for an MLO.
Over the previous year, home values have grown by 4%, and bidding wars are common, especially in the Anchorage area.
This is good news for MLOs as higher home prices translate into larger commission checks.
Is Alaska a Good State to Work as a Mortgage Loan Officer?
Yes, MLOs in Alaska can make a good living.
The median home cost in Fairbanks is $250,000. At a commission rate of 1%, the average sale of a $250,000 loan will generate a $2,500 payday.
Meanwhile, Anchorage, the largest city in Alaska, boasts an even higher average home price, which is great for MLOs. The average Anchorage home sells for $348,000, which equates to $3,480 in commission per transaction.
What are some of the Notable Mortgage Loan Companies in Alaska?
If you’re looking to get in contact with mortgage loan companies to ask about the profession, services, or employment opportunities, you can contact any of the following local businesses:
- Alaska USA Mortgage Company
- Alaska USA Federal Credit Union
- Academy Mortgage (Anchorage)
- Cornerstone Home Lending (Soldotna)
- Alaska Housing Finance Corporation (Fairbanks)
And that is how to become a mortgage loan officer (MLO) in Alaska.
Yes, there are many steps — and each one takes time and effort.
But with this complete guide, you have a roadmap for the whole journey. And knowing what to expect, when to expect it, and how to go through it will make everything easier.
So what are you waiting for?
Go ahead and get started.