Brokers Are Better · March 28, 2025
How NMLS Licensing Protects Mortgage Borrowers
The Nationwide Multistate Licensing System ensures every loan officer and mortgage broker meets education, testing, and background check requirements. Here is what it means for you.
Before you share your financial information with any mortgage professional, you should understand the licensing system that governs them.
What Is NMLS
The Nationwide Multistate Licensing System and Registry (NMLS) is the licensing platform used by mortgage loan originators, brokers, and lenders across the United States. Created after the 2008 financial crisis (through the SAFE Act of 2008), NMLS ensures that anyone who originates mortgage loans meets minimum standards.
What NMLS Licensing Requires
Pre-licensing education: 20+ hours of education covering federal mortgage law, ethics, lending standards, and elective topics.
Testing: The SAFE Mortgage Loan Originator National Test — a standardized examination that has a significant failure rate. Pass rates demonstrate competency.
Background check: Criminal background screening that disqualifies individuals with certain financial crimes or felonies.
Credit check: Financial responsibility is evaluated. Significant delinquencies can prevent licensing.
Annual continuing education: 8+ hours of continuing education annually to maintain licensure.
State-specific requirements: Additional requirements in many states.
How to Verify a Loan Officer's License
Go to nmlsconsumeraccess.org and search by name, company, or NMLS ID number. You can see: current license status and which states they are licensed in, employer history, any disciplinary actions or complaints.
Always verify before you apply. Never work with an unlicensed individual.
HMS Loan Officers: fully licensed in Illinois, Florida, and Indiana. NMLS ID 695728. Call 309-222-8286.