Kentucky Mortgage Loan Officer Pre-Licensure

How to Get a Mortgage Loan Officer License in Kentucky

How to Get Started as a
Kentucky Mortgage Loan Officer | Requirements to Become an MLO Through NMLS

We’ve compiled the six steps you’ll need to take to enroll in Kentucky Pre-Licensure Education (PE) and start your new career as a Mortgage Loan Officer (MLO). We’ve also answered some of the most common questions that prospective Kentucky Loan Officers have as they consider this exciting new career.

How to Become a Loan Officer in Kentucky

1. Request an NMLS Account

Before beginning the educational component of licensing, prospective Loan Officers must create an NMLS (Nationwide Multistate Licensing System & Registry) account on the State Mortgage Registry website. NMLS is a national database in which all Kentucky MLOs must register. After creating their account, applicants receive a personal NMLS number that will be maintained for the duration of their time working as a Loan Officer.

2. Complete NMLS-Approved Pre-Licensure Education

In Kentucky, you’re required to complete 20 hours of coursework in order to meet the education requirements. The courses include the following:

  • 3 hours of Federal Law
  • 3 hours of Ethics
  • 2 hours of Non-Traditional Mortgage Lending
  • 12 hours of General Electives

This set of courses is required by the Kentucky state licensing agency, also known as the Department of Financial Institutions.

3. Pass the SAFE Mortgage Loan Officer Test

The SAFE MLO Test can be scheduled by visiting the NMLS website. Applicants use their existing account number to schedule the exam. The exam has 115 scored questions, and test takers must answer at least 75% correctly. It costs $110 to take, and students are given 3 hours and 10 minutes to complete the test. You can learn more by reviewing the MLO Testing Handbook.

Did You Know?

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4. Complete State and FBI Criminal Background Checks

Kentucky applicants will need to login into their NMLS account and head to the Filing section. From there, click on the Criminal Background Check tab. You will authorize a Federal Criminal Background Check by completing the fields and clicking Attest.

Then, Kentucky applicants must schedule an appointment to submit their fingerprints. In the portal, users will click on the Composite View button then select Criminal Background Requests. In this module, you can schedule your fingerprinting appointment by clicking the “Fieldprint” button.

The total cost of the state and FBI criminal background check is $36.25.

5. Complete the NMLS Application

Now it’s time to submit for official Kentucky licensure through NMLS. Applicants will apply through the NMLS licensing portal. Applicants are advised to review the MLO New Application checklist beforehand in order to ensure they’re ready to apply.

You’ll need to pay $50 for the Kentucky portion of the licensing fee. Additionally, a credit report must be submitted at the time of application for a fee of $15.

6. Secure Your Employer Sponsorship

Your Kentucky Loan Officer License will remain in pending status until your employing sponsorship is verified with NMLS. This verification is completed inside of the NMLS portal. Users will visit the Form Filing Home screen, then click Company Access. They’re then prompted to add their employer sponsorship by submitting employment details. Once the sponsoring employer receives notice of the verification request, they can approve the sponsorship. Upon approval, applicants are officially licensed.

Summary of Kentucky MLO Fees

$200-$500

Pre-Licensure Education

$36.25

Criminal Background Check

$110

The SAFE MLO Test

$15

Credit Report

$50

Kentucky Application Fee

$30

NMLS Processing Fee

real-estate

What Else Is There to Know About Becoming a Mortgage Loan Officer in Kentucky?

What is the definition of a Mortgage Loan Officer in the state of Kentucky?

According to the Kentucky NMLS website:

This license is required of any individual who discusses or negotiates the rates, terms, and condition of a loan with a borrower or prospective borrower.

How much do Kentucky Mortgage Loan Officers make?

According to ZipRecruiter, Kentucky Mortgage Officers make approximately $74,000 per year on average as of October 2021. The 75th percentile of earners makes above $90,000, while the bottom 25th makes under $31,000. Top earners can earn more than $110,000 in Kentucky.

What is the Kentucky market like for Mortgage Loan Officers?

Along with low interest rates, Southern hospitality served with a side of the world's best bourbon and picture-perfect pastures are just two of the many reasons that people want to live in the Bluegrass State. Over the past year, Kentucky home prices have jumped by 12.5%, and that momentum is expected to continue. MLOs can find a steady flow of clients looking to make Kentucky their new home.

Is Kentucky a good state to work in as a Mortgage Loan Officer?

It pays to be a Mortgage Loan Officer in Kentucky. The median home cost in Kentucky is $175,000. At a commission rate of 1%, that’s a $1,750 payment for the MLO once the loan is secured. Here are the average home payouts in a few Kentucky locations:

Louisville:

Average Home Price: $210,000

Average Commission: $2,100

Lexington:

Average Home Price: $246,000

Average Commission: $2,460

Bowling Green:

Average Home Price: $200,000

Average Commission: $2,000

The Avenue of Champions Castle (Kentucky’s Most Expensive Home for Sale):

Home Price: $7,990,000

Your Commission: $79,900

All average home price figures were collected from Zillow.

What are some of the notable Kentucky mortgage loan companies?

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:

Ameriprise Financial (Louisville)

Stockton Mortgage Lexington (Lexington

OneMain Financial (Frankfort)

Meyer Mortgage Corporation (Bowling Green)

Paducah Bank (Paducah)