Tennessee Mortgage Licensing FAQ: Everything You Need to Know
Curious what it’s really like to work in mortgage in Tennessee? Get real insights plus exclusive deals on getting licensed.
Quick Answer:
- Tennessee requires 20 hours of pre-licensing education and passing the SAFE MLO exam with 75%
- Total licensing costs range from $600-$1,000, including education, exam, fees, and background checks
- Most candidates complete the licensing process in 6-8 weeks with proper planning
Navigating Tennessee mortgage licensing raises many questions for aspiring loan originators. Understanding requirements, costs, timelines, and career considerations helps you make informed decisions about pursuing this career path. This comprehensive FAQ addresses the most common questions about becoming a licensed MLO in Tennessee.
Basic Requirements
What are the requirements to become a mortgage loan originator in Tennessee?
Tennessee MLO licensure requires creating an NMLSMortgage.nationwidelicensingsystem.org account, completing 20 hours of NMLS-approved pre-licensing education, including 2 hours of Tennessee-specific content, passing the SAFE MLO exam with a minimum 75% score, passing criminal background checks and credit evaluation, submitting your license application through NMLS, and securing sponsorship from a licensed mortgage company.
Do I need a college degree to become a Tennessee mortgage loan originator?
No college degree is required. Tennessee mandates only a high school diploma or equivalent for MLO licensure. While higher education may provide advantages in understanding financial concepts, the licensing requirements focus on specific mortgage education and demonstrated competency through examination rather than academic credentials.
Is there a minimum age requirement?
Tennessee does not specify a minimum age in the licensing statutes, though practical requirements effectively limit licensure to adults. You must be able to enter binding contracts, undergo background checks, and meet employment requirements that typically require being at least 18 years old.
Education Questions
How many hours of pre-licensing education does Tennessee require?
Tennessee requires 20 hours of NMLS-approved pre-licensing educationPre License Understanding Pre Licensing And Continuing Education Requirements For Mortgage Careers Resources. This includes 18 hours of national content covering federal law, ethics, non-traditional lending, and general mortgage knowledge, plus 2 hours focused specifically on Tennessee mortgage laws and regulations.
Can I complete pre-licensing education online?
Yes, but with important restrictions. NMLS only accepts the national pre-licensing education through live classroom, live webinar, or online instructor-led formats. Completely self-paced courses without instructor involvement do not satisfy requirements. Online instructor-led courses provide flexibility while meeting NMLS approval standards.
How long does pre-licensing education take to complete?
Completion time varies by format and personal schedule. Intensive programs can be finished in as few as 4-5 days. Most students complete their education over 2-3 weeks, allowing time to absorb material effectively. Choose a pace that balances efficiency with learning quality since this education directly impacts your exam performance.
How long is my pre-licensing education valid?
Education completion remains valid for three years. If you do not obtain your MLO license within three years of completing education, you must retake the full 20-hour course before applying.
Exam Questions
What score do I need to pass the NMLS exam?
You must score at least 75% on the SAFE MLO exam to pass. The exam contains 120 questions with 115 scored. To achieve 75%, you need at least 87 correct answers out of 115 scored questions. According to NMLS statisticsKnowledge Products Nmls Pubs TestingHbk Education Mlo_testing Mlo_test_faq Mlo_testing_hbk_FAQ.html Mortgage.nationwidelicensingsystem.org, national first-time pass rates average around 54-58%.
How long is the NMLS exam?
The exam allows 190 minutes (approximately 3 hours and 10 minutes) to complete 120 multiple-choice questions. This provides roughly 1.5 minutes per question on average.
Where do I take the NMLS exam?
The exam is administered at Prometric testing centers. Tennessee has multiple locations in major cities including Nashville, Memphis, Knoxville, and Chattanooga. Schedule your appointment through your NMLS account after completing education requirements.
What happens if I fail the exam?
You can retake the exam after a 30-day waiting period following your first and second failed attempts. After three failures, you must wait 180 days before trying again. Each retake requires paying the full exam fee. Use waiting periods productively for additional targeted preparationPre License Failed Your First Mlo Exam Heres Your Comeback Strategy Resources.
Is the NMLS exam difficult?
The exam challenges many candidates, with nearly half failing on their first attempt. Success requires more than just completing minimum education hours. The exam tests application of knowledge through scenario-based questions rather than simple fact recall. Thorough exam preparationPre License Is The Nmls Exam Hard What To Know Before You Start Studying Resources beyond basic coursework significantly improves pass rates.
Cost Questions
How much does it cost to get a Tennessee mortgage license?
Total costs typically range from $600-$1,000 including pre-licensing education ($200-$500 depending on provider and included materials), NMLS exam fee, Tennessee application and license fees (approximately $200-$300 combined), NMLS processing fee, FBI criminal background check (approximately $36.25), and credit report fee (approximately $15). Some employers may reimburse certain costs for candidates they hire.
Are licensing fees refundable?
Generally no. NMLS exam fees, application fees, and background check costs are non-refundable even if you withdraw your application or fail to complete the licensing process. Ensure you are committed to completing licensure before incurring these costs.
Is Mortgage Lending Right for You? What to Expect from MLO Jobs
MLOs help people become homeowners. If you are motivated and detail-oriented, this career may be a good fit for you.
Background Check Questions
What background checks does Tennessee require?
Tennessee requires FBI criminal background checks through fingerprinting and credit report evaluation. Both are submitted through your NMLS account. Results are used to verify you meet statutory fitness standards for licensure.
Will a criminal record prevent me from getting licensed?
Certain criminal history creates statutory bars to licensure. According to Tennessee Code § 45-13-302Codes Tennessee Title 45 Chapter 13 Part 3 Section 45 13 302 Law.justia.com, felony convictions within seven years generally disqualify applicants. Felonies involving fraud, breach of trust, money laundering, or counterfeiting create lifetime bars regardless of timing. Misdemeanors do not automatically disqualify but may require explanation.
Is there a minimum credit score requirement?
Tennessee does not mandate a minimum credit score for MLO licensure. However, regulators review credit history for patterns indicating financial irresponsibility. Significant unresolved issues may affect your application, though isolated past problems that have been addressed typically do not prevent approval.
Timeline Questions
How long does it take to get a Tennessee mortgage license?
Most candidates complete the licensing process in 6-8 weeks with efficient planning. This includes 1-3 days for NMLS account creation, 2-3 weeks for education, 2-4 weeks for exam preparation and testing, and 2-4 weeks for background checks and application processing. Employer sponsorship timing depends on your individual employment situation.
Can I speed up the licensing process?
Run steps in parallel where possible. Initiate background checks immediately after creating your NMLS account rather than waiting until application time. Begin interviewing with potential employers during education to secure sponsorship quickly after approval. Invest in thorough exam preparation to avoid retake delays.
Employment Questions
Do I need to work for a company to get my license?
Yes. Tennessee requires employer sponsorship for your license to become active. You cannot originate mortgage loans independently. A licensed mortgage company, lender, or broker must sponsor your license through NMLS before you can begin working.
Can I work part-time as a mortgage loan originator?
Yes. Many MLOs work part-time schedulesPre License A Day In The Life Of A Part Time Mortgage Loan Originator Resources, though sponsoring employers set their own requirements for working arrangements. Commission-based compensation structures common in mortgage lending make part-time work financially viable for some professionals.
What if I want to work for multiple companies?
Tennessee MLOs typically work under a single employer sponsorship at a time. If you want to change employers, your new company submits sponsorship while your previous sponsorship terminates. Some branch arrangements may allow work under related entities, but discuss specific situations with potential employers.
License Maintenance Questions
How do I renew my Tennessee mortgage license?
Renew annually through NMLS during the November 1 - December 31 renewal window. You must complete 8 hours of continuing education before you can submit renewal. Pay applicable renewal fees through NMLS. Background checks require updating every three years.
What continuing education does Tennessee require?
Tennessee requires 8 hours of NMLS-approved continuing educationPre License Understanding Pre Licensing And Continuing Education Requirements For Mortgage Careers Resources annually. This must include 3 hours of federal law, 2 hours of ethics, 2 hours of non-traditional lending, and 1 elective hour. Tennessee does not require additional state-specific CE hours beyond this federal minimum.
What happens if I miss the renewal deadline?
Your license expires and enters inactive status on January 1st if not renewed by December 31st. You cannot originate loans while inactive. Tennessee allows reinstatement through the end of February by completing late CE and renewal with applicable fees. After February 28th, you may need to completely restart the licensing process.
Career Questions
How much do mortgage loan originators make in Tennessee?
MLO compensation varies significantly based on loan volume, commission structures, and market conditions. According to the Bureau of Labor StatisticsBusiness And Financial Loan Officers.htm Ooh, loan officers nationally earn median annual wages around $65,000-$75,000, though top performers in active markets earn substantially more through commission-based compensation.
Is mortgage lending a good career?
Mortgage lending offers significant earning potential, flexibility, and the satisfaction of helping families achieve homeownership. However, income depends heavily on personal performance and market conditions. The career suits motivated individuals comfortable with commission-based compensation and sales-oriented work. Consider whether this career fitsPre License Why Become A Mortgage Loan Originator Resources your personality and goals before investing in licensure.
Start Your Tennessee Mortgage Career
Understanding Tennessee licensing requirements positions you to move efficiently through the process toward your new career. With proper preparation and planning, most candidates complete licensure within weeks and begin helping Tennessee families achieve their homeownership dreams.
Aceable Mortgage provides NMLS-approved pre-licensing education designed for exam success and professional excellence. Our programs feature instruction from active mortgage professionals, comprehensive preparation materials, and support throughout your licensing journey. Start your Tennessee pre-licensing educationPre License today and take the first step toward your mortgage career.