$35
NMLS MU4 processing fee
Licensing Education
What it takes to become a licensed loan originator
Real estate agents and influencers ask us about this constantly. This is what you need to know: the Eight Steps, the costs to expect, and where fees and hours vary by state and change over time.
20 hrs
Federal pre-license baseline
75%
SAFE test passing score
8 hrs
Annual Continuing Education federal baseline
The licensing path
Eight Steps, same for every state
The core process is federal — set by the SAFE Act — and doesn't vary much state to state. What varies is the extra hours, extra fees, and extra documentation a specific state layers on top.
Get an individual NMLS ID
Create your NMLS account. This ID stays with you for your entire career, across every state and every employer. Request your account here →
Complete pre-licensing education
20 hours minimum (federal baseline), plus any state-specific hours the state you're licensing in requires. We recommend 24HourEdu.com for your pre-license 20 hours of education — use code Cahill10 at checkout for $10 off your course.
Pass the SAFE MLO National Test
Score 75% or higher. You generally only take this once — a valid passing result carries over when you add other states.
Complete background and credit checks
Fingerprints, a federal criminal background check, and credit report authorization.
Submit your state MU4 application
File through NMLS for the specific state where the property you're financing is located.
Get sponsored
An authorized mortgage company sponsors your license in that state. Without sponsorship, you can not do loan origination.
Oaktree Funding would be honored to partner with you as your sponsor.
Schedule a private strategy call →Wait for approved & active status
Completing every step above doesn't automatically authorize you to originate — the license itself has to be approved and active first.
Repeat per state, as needed
Same NMLS ID, no repeat of the national test — just a new MU4, new state fee, and possibly new state-specific education requirements for each additional state.
Get the language right
Five terms worth knowing
NMLS
The Nationwide Multistate Licensing System — the centralized registry for licensing, education records, testing, background checks, and renewals across the mortgage industry.
NMLS ID
Your permanent individual identifier. It doesn't change when you add a state or switch employers.
Form MU4
The actual filing used to apply for and maintain your state license(s) inside NMLS.
Sponsorship
The formal relationship where an authorized mortgage company takes responsibility for supervising your licensed activity. All states require it before you can originate.
Originate, not "issue"
An MLO originates a loan — takes the application, negotiates terms. The lender approves, closes, and funds it. Different roles, worth using the right word.
What it actually costs
The charges that apply wherever you register
These are the national charges that layer into almost every state's total below — you won't need to add these on top yourself, since each state's "Est. filing fee" in the section below already includes the ones that state actually requires.
$35
NMLS MU4 processing fee, per application
$35
NMLS annual renewal processing fee, per license
$110
SAFE MLO National Test
$36.25
FBI criminal background check
$15
Credit report, when required
Adding another state later generally costs: that state's application/license fee + the $35 MU4 fee + any state-specific education + a possible state fund assessment, plus a refreshed credit/background check if enough time has passed.
Renewal window: Nov 1 – Dec 31 each year. CE has to be completed first — States won't accept a renewal application from an MLO who isn't CE-compliant.
State-by-state requirements
What your specific state requires
Each state's filing fee below is a real all-in total — application/license fee plus the $35 NMLS charge plus credit report and background check where that state requires them. However, if you are adding an additional state, your fingerprints, credit check and background check may still be valid once you are registered in one state. So adding another state may only cost you the $35 NMLS registration fee and that state's specific registration fee.
Most states only require 20 hours of pre-license coursework.
Only 8 states actually require more than 20 total hours of pre-license coursework.
Only these 8 states exceed the 20-hour federal baseline
Connecticut — 21
Nevada — 30
North Carolina — 24
Ohio — 24
Texas — 23
Utah — 25
Washington — 22
West Virginia — 24
These states add nothing beyond the federal baseline (20 PE / 8 CE)
ALAKARDE
ILINIAKS
LAMEMOND
SDVAWIWY
Pre-license (PE) hours come from the NMLS Checklist Compiler — state-agency-reported data pulled directly from NMLS's own resource center, retrieved September 2026. Each state's filing fee is that same source's application/license fee, plus the $35 NMLS processing fee, plus a $15 credit report and $36.25 background check wherever that state requires them. Continuing education (CE) figures aren't part of the Checklist Compiler export and are sourced separately per state; where a CE figure carries extra uncertainty, that state's panel says so directly.
Frequently asked
Questions worth answering upfront
Yes, if you meet the education, testing, background, application, and sponsorship requirements.
Generally, no. A degree isn't part of the federal SAFE Act baseline. States can impose their own education, age, character, and background requirements, so confirm the current checklist for your target state.
No. A valid passing SAFE MLO test result is used when applying in additional states, provided it hasn't lapsed.
No. You need a separate license for every state where the property securing the loan is located.
Varies by state. Typically: that state's fee, the $35 NMLS MU4 fee, any state-specific education, and possibly a fresh background or credit check.
No. Filing doesn't automatically authorize origination — the license has to reach approved, active status, and sponsorship has to be in effect.
No. A real estate license and an MLO license authorize different, separate activities.
Five questions worth considering before
Registering in Additional States
1
Company authority
Is your sponsoring company actually licensed and operating in that state?
2
Existing opportunity
Do you already have agents, borrowers, or referral relationships there likely to produce business?
3
Economics
Would one realistic funded loan justify the initial and ongoing cost?
4
Operational capability
Can the company actually process, underwrite, close, and support loans there?
5
Renewal discipline
Will you actually review this license against real pipeline before renewing it? Will there be more continuing education requirements that you need to complete each year?
Don't add a state merely because the application fee is cheap. Add a state because there's a credible path to funded loans.
When you determine adding an additional state is appropriate, visit 24HourEDU to take the pre-license course if needed for that state.
This page is educational, not legal, tax, or licensing advice, and current as of September 2026. Mortgage licensing requirements, fees, education hours, and sponsorship rules change, and vary by state and by regulator. Pre-license hours are sourced from NMLS's own Checklist Compiler; state fee totals combine that source with the standard NMLS/credit/background charges. Confirm current figures against the NMLS checklist and the applicable state regulator before making any licensing decision.
- Licensure is subject to regulator approval, not guaranteed by completing education or applying.
- No income, approval, or timeline is guaranteed.
- Employment or sponsorship by an authorized mortgage company is required before you may originate loans.
- You may not perform licensed origination activity until your license reaches approved, active status.
Have questions about your specific situation?
A licensing strategy call is the fastest way to get real, current answers for your state.