Mortgage Broker Exam

Mortgage Broker Exams and Certification

In the United States, there are multiple requirements for becoming a licensed mortgage broker which includes an exam. The prerequisites for mortgage broker license vary from state to state. Some states require minimum education followed by exams, and even require continuing education after getting a license.

 

Each state has a department or agency that regulates the mortgage industry that sets the laws and requirements for getting a mortgage broker license.

 

In some states mortgage broker exams must be passed before obtaining a license, which is a rigorous and multi-step process. Typically, a certain amount of educational hours are required at an accredited institution to prepare for the exam. Out of the fifty states, just over ten states have some sort of mortgage broker exam including Arizona, Florida, Illinois, Louisiana, Montana, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Texas, Utah, Washington. So it's important for prospective mortgage brokers to check with their local state department or agency about information regarding exams.

 

Let's take Utah for example, where the mortgage industry is regulated by Mortgage the Utah Division of Real Estate. Individuals applying to become mortgage brokers must complete at least 20 hours of pre-license education at certified school and pass the licensing exam before applying. If the applicant does not apply within 90 days of passing the exam the results are voided and a new examination must be taken. Loan officers are required to have the same education and take the exam.

 

The National Association of Mortgage Brokers (NAMB) is a national organization focused on promoting the highest degree of professionalism and ethical standards for its fellow mortgage broker members. Each state has its own organization affiliated with the NAMB. The NAMB offers multiple benefits such as legislative voice, educational programs, industry information, conferences and much more.

 

The NAMB offers multiple certification exams that will distinguish brokers in the mortgage industry. It should be noted that these mortgage broker exams offered by the NAMB are additional and optional exams to some of the already state-required tests. The certification exams will test mortgage brokers advanced knowledge of the industry, boost their credentials and reputations, and give more them confidence.

 

The three mortgage broker exams offered are General Mortgage Associate
GMA, Certified Residential Mortgage Specialist CRMS, and Certified Mortgage ConsultantCMC. Because these exams don't gauge "academic excellence" but rather competency, they are scored as either pass or fail. The exams are open to members and non-members and are computer-based and are offered at more than 200 exam locations throughout the United States.

 

General Mortgage Associate is an entry-level exam for individuals who want to demonstrate the minimum level of knowledge in the mortgage industry. The GMA exam features 125 questions within seven subject-matter areas. A passing score is over 68% of questions answered correctly.

 

Certified Residential Mortgage Specialist is mid-level exam for those who want to commit to higher standards of professional practice in the mortgage industry. This three hour based exam contains 125 multiple-choice questions that fall within six subject-matter areas. The passing score is over 75% questions answered correctly. The CRMS exam is open to mortgage brokers with at least two year experience.

 

Certified Mortgage Consultant is the most advanced exam for mortgage professionals who want to demonstrate the highest level of professionalism. The CMC is a four hour computer based exam and contains 200 multiple-choice questions that fall within six subject-matter areas. A passing score is over 75% questions answered correctly. The CMC exam is open to mortgage brokers with at least five years of experience.