Pennsylvania Mortgage Licensing and Education Courses

How to Become a Mortgage Loan Originator in Pennsylvania (PA)

Obtaining a Pennsylvania Loan Officer (MLO) license involves a series of steps outlined by the Pennsylvania Department of Banking and Securities, Non-Depository Licensing Office staff. You can contact them at 717-787-3717 or email them at ra-asklicensing@pa.gov for further assistance. You can also access the Nationwide Multistate Licensing System (NMLS) for details. Here is a straightforward, step-by-step guide to help you through the process:

Who needs a PA Mortgage License?

Get your PA 20-Hour Online Course Here.

Examples of individuals who require a mortgage originator license if conducting mortgage originator activities in the Commonwealth or if the mortgage loan originated is secured by a Pennsylvania dwelling or residential real property:

  • partners in, equitable owners of 10% or more, or directors of, licensed mortgage businesses who originate mortgage loans.
  • individuals originating mortgage loans secured by manufactured or mobile homes and individuals originating residential construction loans.
  • mortgage originators who are employees of affiliates of banking institutions or credit unions agents (not employees) who originate mortgage loans for banking institutions or credit unions.
  • independent loan processors or underwriters who conduct mortgage origination activities.
  • any individual who re-negotiates an existing mortgage loan not held or serviced by their employer, including so-called mortgage loan modification businesses.

A mortgage originator shall be an employee of a single mortgage broker, mortgage lender, or mortgage loan correspondent who has this Department licenses or a business exempted or partially exempted from the MLA.

A mortgage business shall directly supervise, control, and maintain responsibility for the acts and omissions of the mortgage originator. A mortgage originator shall be assigned to and work out of a licensed location of the employer license. 7 Pa.C.S. § 6131(f).

Steps to Become a PA Mortgage Loan Originator

Create an NMLS Account
 Start by setting up an individual account on the NMLS website (mortgage.nationwidelicensingsystem.org). This straightforward process will give you a unique NMLS ID number, which you will use throughout the licensing process. It is a quick process—provide your personal information and confirm your account. Remember, we are here to support you every step of the way.

  1. Complete Pre-License Education (PE)
     You must complete 20 hours of NMLS-approved pre-licensing education. This includes:
    1. 20 hours of general mortgage-related coursework covering federal law, ethics, and loan origination basics; one could take seventeen general hours plus 3 hours of PA specific. However, other states will require an additional 3 hours of Federal electives, as they do not accept hours from another state’s particular law towards the additional state’s requirements.
    2. 3 hours of Pennsylvania-specific content focusing on state laws and regulations.
        These courses can be taken online. Click here to view the Pennsylvania Loan Officer Online Course bundle, offering incredible flexibility. Our course and custom schedule options allow you to select the option that best suits your needs. Keep your completion certificate handy, as the provider typically reports it to NMLS on your behalf.
  2. Pass the SAFE MLO Exam
     Schedule and pass the National SAFE Loan Officer test with Uniform State Content through your NMLS account. Here is guidance on scheduling your NMLS exam.
    1. The exam consists of 115 scored questions, costs $110, and takes approximately 3 hours to complete.
    2. You need a score of 75% or higher to pass.
    3. Study materials and practice tests are recommended, as the first-time pass rate is approximately 58%. Our PA MLO Course bundle includes a robust test preparation program; you get the results if you put in the work. If you have already completed a 20-hour course and require additional test preparation resources, we have you covered with our ACE Test Prep Program . We are here to support you every step of the way, ensuring you feel confident and prepared.
  3. Submit Your License Application (MU4 Form)
     Once you have completed your education and passed the exam, the next step is to submit your license application. This involves logging into your NMLS account and completing the Individual Form (MU4) to apply for a Pennsylvania MLO license. Please provide your details, including residency and employment history.
    1. Personal details, including residency and employment history.
  4. Fees: $200 (application fee), $30 (NMLS processing fee), $15 (credit report), and approximately $36.25 for FBI and $22 for state background checks.
  5. Authorize a credit report and submit fingerprints for a criminal background check. You will need to complete a fingerprint-based background check with an NMLS-authorized live scan service provider.
  6. Get Sponsored by an Employer
       It is important to note that to become a licensed Loan Originator, you must have a licensed lender or company sponsor your license. This is a crucial step, as it means that once you are hired, your employer will verify sponsorship through NMLS by linking their credentials to your account. Your license remains “pending” until this step is complete.
  7. Wait for Approval
     After you have completed all the necessary steps, including education, exam, fees, background checks, and sponsorship, Pennsylvania will review your application. If all requirements are met, your license will be issued. This decisive step of approval marks the culmination of your efforts and the beginning of your career as a licensed Mortgage Loan Originator. Be sure to check your NMLS account for status updates.

Key Tips:

  • Timing: Start early—education and exam prep can take weeks, and approval depends on how fast you complete each step.
  • Costs: Total fees are roughly $250-300, plus the cost of your education course (varies by provider, often $400–$600, AAA Mortgage Training’s package costs $335.49 plus the $34.50 NMLS recording fees for a total of $369.99 with instructor access by email, chat, phone or text message throughout the course and test prep period.) PA NMLS MLO Checklist indicates total licensing costs paid at license application:

PA Loan Officer License Fees submitted via the NMLS.

  • NMLS Initial Processing Fee: $30
  • Pennsylvania Application Fee: $200.00
  • Credit Report: $15
  • FBI Criminal Background Check: $36.25
  • PE State Criminal Background Check $22
  • Renewal: Once licensed, you are required to complete 8 hours of continuing education, including 1 hour of PA law annually to renew by December 31.

That is it! Once approved, you can work as a Loan Officer (MLO) in Pennsylvania, assisting clients in securing mortgage loans. Please remember, we are here to help if you need details on any step or if you have any questions. You are not alone in this process.

Summary

  • Create an NMLS Account. Set up an individual account on the NMLS website to receive a unique NMLS ID number. 
  • Complete Pre-License Education (PE). Complete 20 hours of NMLS-approved pre-licensing education, comprising 17 hours of general mortgage-related coursework and 3 hours of Pennsylvania-specific content. 
  • Pass the SAFE MLO Exam and the National SAFE Loan Officer Test with Uniform State Content through your NMLS account. The exam consists of 115 scored questions, costs $110, and requires a score of 75% or higher to pass. 
  • Submit Your License Application (MU4 Form) - File the Individual MU4 Form on the NMLS website, providing your details and paying the required fees. Authorize a credit report and submit fingerprints for a criminal background check. 

PENNSYLVANIA NOTES

I wanted to inform you that this checklist is not a substitute for reviewing the relevant statutes and rules.

MLOs and the public may rely on information provided in the NMLS to demonstrate and verify license status. Sponsoring companies will receive an email notification indicating the issuance of licenses for new applicants. Individuals will receive notice via the NMLS concerning the change in status to “Approved.”

Once these steps are completed, secure sponsorship from a licensed Loan Originator, lender, or company, and wait for approval from the Pennsylvania Department of Financial Institutions.