What Is Mortgage
License Reciprocity?
A MORTGAGE EBOOK FROM
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Once you’ve become licensed as a Mortgage Loan Officer and
fluent in your state’s requirements, you can get licensed in any
other U.S. state. Let’s take some time to discuss what reciprocity
is, how many licenses you can have, and what requirements
you’ll have to fill to take advantage of multiple licensures.
Introduction
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What is
Mortgage Loan
Officer License
Reciprocity?
Mortgage license reciprocity is the ability of
a mortgage license earned in one state to be
used in other states. Different states have varying
requirements; this guide explains how to transfer a
mortgage license to another state and lists the states
that offer mortgage reciprocity.
All U.S. states have mortgage License reciprocity,
meaning you can apply and obtain your MLO
license in all states if you so choose.
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How Many Mortgage
Licenses Can You Hold?
DISTANCE REQUIREMENT
The distance requirement is a mandatory
distance policy between your residence
and the nearest branch office—which
also needs to be licensed in the state
where you’re originating loans. The
distance requirement is mandatory
in a few states, and if you can’t meet
the requirement, you won’t be able to
receive your MLO license there.
You can have as many mortgage licenses as you want, if you’ve met the requirements set by the
NMLS and the state. There are a few requirements you must abide by, which we’ll outline here.
CONTINUING EDUCATION
Depending on the state you must
complete extra coursework, but you’ll
also have to keep up with annual
Continuing Education courses to
maintain your license. Plus, if the state
where you received your second license
has state-specific CE requirements,
you’ll have to complete those as well.
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Can You Transfer
My Current
License to
Another State?
You may be wondering, “can I just transfer
my current license to another state?” The
answer is technically no. Although you can
get a Mortgage Loan Originator License in
another state, you will have to apply for your
license in the new state, as well as meet any
extra education requirements they may have.
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Before you invest
in anything else,
exhaust the
possibilities of
investing in your
own business first.
PAUL ZANE PILZER,
American Economist and Author
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Education
Requirements
All Mortgage Loan Officers must take an NMLS-approved
20-hour Pre-Licensure course before you’re able to take
the test for your license. This is required for all states, no
exceptions. Aside from the national 20-hour Pre-Licensure
courses, some states do require additional education. This
additional education is state-specific, often to teach you
about the laws in the state you’re getting licensed in.
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Which States Require
Additional Education?
The states that DO require additional education (and how many additional hours you need for each state) are as follows:
ARIZONA
CALIFORNIA DFPI
COLORADO
CONNECTICUT
FLORIDA
HAWAII
IDAHO
INDIANA SOS
MARYLAND
MASSACHUSETTS
MICHIGAN
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
4-hour AZ law
2-hour CA law
2-hour CO law
1-hour CT law
2-hour FL law
3-hour HI law
2-hour ID law
2-hour IN law
5-hour MD law
3-hour MA law
2-hour MI law
2-hour MT law
2-hour NE state-specific
10-hour NV state-specific
2-hour NH state-specific
4-hour NJ state-specific
NEW MEXICO
NEW YORK
NORTH CAROLINA
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA BFI
SOUTH CAROLINA DCA
TENNESSEE
TEXAS SML
VERMONT
WASHINGTON
WEST VIRGINIA
3-hour NM state-specific
3-hour NY law
4-hour NC law
4-hour OH law
1-hour OK law
4-hour OR state-specific
3-hour PA law
3-hour RI law
3-hour SC state-specific
3-hour SC state-specific
2-hour TN law
3-hour TX law
2-hour VT state-specific
4-hour WA law
4-hour WV law
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Which States Do Not Require
Additional Education?
The states that DO NOT require additional education are:
ALABAMA
ALASKA
ARKANSAS
CALIFORNIA DRE
DELAWARE
GEORGIA
ILLINOIS
INDIANA DFI
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MINNESOTA
MISSISSIPPI
MISSOURI
NORTH DAKOTA
SOUTH DAKOTA
TEXAS OCCC
UTAH DFI
UTAH DRE
VIRGINIA
WISCONSIN
WYOMING
Answers to any
additional questions you
may have can be found
in the NMLS Policy
Guidebook.
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In some states you must choose which institution or
commission you’d like to be licensed under. Depending
on your state there may be multiple institutions, and their
additional education requirements vary. Here’s an index of
the abbreviations you’ll see:
• BFI – Board of Financial Institutions
• DCA – Department of Consumer Affairs
• DFI – Department of Financial Institutions
• DFPI – Department of Financial Protection and Innovation
• DRE – Department of Real Estate
• OCCC – Office of Consumer Credit Commissioner
• SML – Department of Savings and Mortgage Lending
• SOS – Secretary of State
What Are Those
Abbreviations?
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As an entrepreneur you
own your business, you
expand your brand, you
increase your impact,
you live with no excuses,
and you enjoy your
intentional growth daily.
FARSHAD ASL,
Author and CEO
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If you’re not yet a licensed Mortgage Loan Officer,
here are a few resources for you to check out:
• What Are the Steps to Getting Your Mortgage Loan
Officer License?
• The 5 Steps to Taking the SAFE MLO Test
• I Passed the SAFE MLO Test...Now What?
If you are a licensed Mortgage Loan Officer, you’ve
completed many of the important steps necessary for
reciprocity. You’re only required to take the 20-Hour
Pre-Licensure course once – excluding those that put
their license on hold – so there’s no need to take it
again. Your first step will be to find the state you’d like
to get licensed in, check for state-specific education
requirements, and gather the necessary documents
you’ll need for your application.
What Are Your
Next Steps?
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If you’re looking for ways to expand your business,
build your credibility as an MLO, and work in
geographic locations with varying trends, you should
look into getting licensed in more than one state.
Although getting multiple Mortgage Loan Officer
licenses can be a hefty task, it certainly isn’t
impossible. If you’ve got the time, resources, and
determination, you can benefit greatly from having
multiple licenses.
Go Forth and
Get Licensed!
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About Us
Founded in 2005, The CE Shop has become the leading
provider of professional education. Written by industry
experts and approved by NMLS, our mortgage offerings
are ever-expanding. Our Pre-Licensure Education,
Continuing Education, and Exam Prep Edge offerings
are trusted throughout the industry and offer mortgage
professionals across the country the education they rely on.
With products available in all 50 states, D.C., Guam, Puerto
Rico, and the U.S. Virgin Islands, we’re driven by a desire to
constantly improve, both for ourselves and our students.
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