How to become a mortgage broker in Michigan

If you want to become a mortgage broker in Michigan, you will first need to obtain a mortgage broker license.

In The Wolverine State, you need to get state-specific Pre-licensure Education (PEI) to become licensed. You also need to create an account with the National Mortgage Licensing System (NMLS). Both have requirements that you will need to meet if you want to get a license.

In this article, we will break down the steps you must take to become a mortgage broker in Michigan, plus the licensing requirements. We will also outline the associated costs. Here is everything you need to know about how to become a mortgage broker in Michigan.

How to become a mortgage broker in Michigan

If you want to learn how to become a mortgage broker in Michigan, there are essentially five basic steps that you need to take. Here is a quick look:

1. Get real estate salesperson license
2. Gain professional experience
3. Finish mortgage broker coursework
4. Pass Michigan real estate broker exam
5. Apply for Michigan broker license

Let’s look at each a little more closely to give you a better idea of how to become a mortgage broker in Michigan.

1. Get real estate salesperson license

The first step is to work as a licensed real estate salesperson. Real estate salespersons in Michigan can only work under the supervision of a mortgage broker, who is commonly referred to as the sponsoring broker.

That is why it is crucial for you to gain experience yourself prior to becoming a mortgage broker in Michigan. After all, as a mortgage broker, you will have a team that depends on your professional experience and expertise.

To get your real estate salesperson license in Michigan, you must complete the following:

• Meet basic requirements such as being at least 18 years old and having a good moral character
• Successfully complete a 40-hour pre-license real estate course from an approved educational institution
• Finish your online real estate license application
• Find a sponsoring broker
• Successfully complete the Michigan real estate exam

With your Michigan real estate salesperson license, you can represent clients with the buying and selling of real estate.

For a bigger-picture view on becoming a mortgage broker in the US, our guide can help.

2. Gain professional experience

To become a mortgage broker in Michigan, you must have at least three years of full-time experience as a real estate salesperson or equivalent experience. This is according to state law.

What is equivalent experience? Here is a look at fields that are adjacent to real estate:

• Licensed builder that built/sold residential/commercial/industrial properties
• Invester that negotiated buying/selling of real estate properties
• Developer of land/condominium
• Attorney representing client in six real estate transactions per year minimum
• Loan/trust officer of federal/state-regulated depository institution
• Loan/trust officer of mortgage company
• Unlicensed real estate officer of a mortgage company
• Title insurance company officer working in real estate closings/closing of escrow accounts
• Appraiser of real property

3. Finish mortgage broker coursework

The next step in becoming a mortgage broker in Michigan is to take broker coursework. This means completing a state-approved 90-hour real estate course designed specifically for mortgage brokers. Keep in mind that this course is more challenging than the real estate salesperson course. It will, however, prepare you for the next step—passing your Michigan real estate broker exam.

4. Pass Michigan real estate broker exam

Here are some of the main details that you need to know before you take the Michigan real estate broker exam.

• The test consists of 115 questions
• You are allotted three and a half hours to finish the exam
• A score of at least 75% is required to pass
• You have the option to retake the exam if you do not pass on the first attempt
• For each attempt to take the test, there is a fee of $79

Remember: taking practice tests will help you prepare. For more information, there is also a Candidate Information Booklet available to provide you with an overview of the testing process.

5. Apply for mortgage broker license

You have passed the Michigan mortgage broker exam. Now, you can apply for your Michigan mortgage broker license online. To complete this step, you must complete the application and pay an application fee of $134. Once approved, you will officially be a licensed mortgage broker in Michigan.

Licensing requirements become a mortgage broker in Michigan

To sell mortgages in Michigan, you must get a mortgage license. Every state has its own licensing requirements for becoming a mortgage broker. However, all states use the Nationwide Mortgage Licensing System (NMLS) to track licensing. Find out how that works in our guide on getting your NMLS license.

Here is a checklist to get your mortgage license in Michigan:

1. Apply for NMLS account/ID number
2. Finish Michigan mortgage Pre-License Education (PE)
3. Pass licensing exam
4. Apply for Michigan mortgage license through NMLS
5. Complete background checks/pay fees
6. Associate NMLS account with employer

Let’s take a closer look at each of the items on the checklist to getting your mortgage license in Michigan.

1. Apply for NMLS account/ID number

First, you need to get an NMLS account. At this point, you will be assigned an NMLS Unique Identifier, or NMLS ID. This will be your license number for the rest of your career as a mortgage broker. Before you take any education or do business, you will need this number. You can coordinate the creation of your account with your future employer.

2. Finish Michigan mortgage Pre-License Education (PE)

The next step in the process is to take the required pre-license courses. These courses help you learn mortgage procedures and laws. All states have different mortgage education requirements. If, for example, you work for a non-bank institution, or mortgage company, you must get licensed in each state you plan to work in.

The SAFE Act requires you to take at least 20 hours of pre-license education. In Michigan, you must take 20 hours of pre-license education and pass a licensing exam. This pre-license education must include 18 hours of general education that is NMLS-approved. Additionally, you must take a two-hour Michigan state-specific elective.

If you want to become a mortgage broker in Michigan, you must take Pre-license Education. 

3. Pass licensing exam

You then need to schedule an appointment to take your licensing exam at a testing facility. This is also referred to as the SAFE test or MLO exam, which is administered by Prometric.

4. Apply for Michigan mortgage license through NMLS

You will need to apply for a Michigan mortgage license through the NMLS website. Before submitting any paperwork, it is important to check with the mortgage company you plan to work for. They may fill out the application for you.

5. Complete background checks/pay fees

Completing a background check is a part of the process in most US states. This includes submitting fingerprints as well as a credit report. You can request a background check on the NMLS website.

6. Associate NMLS account with employer

In other words—get hired. Your NMLS record must be associated with your employer, even if you are already working closely with them. This is a necessary final step before you can receive your mortgage license in Michigan. 

Is mortgage brokering competitive in Michigan? 

Yes. The mortgage broker business is more competitive than ever. For mortgage brokers who want to attract new clients and retain current ones, it is important to stand out from the competition.

One good way to stand out from the crowd is to turn your clients into advocates for you and what you do. How? Deliver premium customer service and meet their needs. It is the best way to retain your current clients, as well as accrue referrals and recommendations for prospective clients in the future.

One way to achieve this is to help clients find solutions where other mortgage brokers can’t. This requires strong partnerships with lenders that offer a broad suite of mortgage products. You must also be willing to diversify. If you work with the right lending partner, you can deliver that top-tier service to your clients. Building trust means clients will be more willing to do business with you again and pass on your info to their family and friends.

Become a mortgage broker in Michigan and change lives

Mortgage brokers are essential to the mortgage industry, in Michigan as elsewhere. They help families and business owners along their way to purchasing the property that will make their dreams come true. When becoming a mortgage broker in Michigan, you may run into challenges in the application process. However, there are also many perks and benefits once you are licensed.

Remember: the more knowledge you have, the better off you will be.

If you're truly interested in becoming a mortgage broker in Michigan or anywhere, take the time to look at the mortgage professionals we highlight in our Best of Mortgage section. Here you will find the top performing mortgage professionals, including mortgage brokers, across the USA.

Did you find these tips on how to become a mortgage broker in Michigan useful? Have you recently earned your mortgage broker license in Michigan? Let us know in the comment section below.