Multiple mortgage companies have rolled out loan originator education programs over the past few years with the goal of injecting new life into the industry.
While many lenders and brokerages have in-house training for employees, there are also some programs available to anyone looking to become a licensed loan originator or further expand their education.
Some programs have been around for nearly 20 years, while others are still working out the kinks.
Here are a few options aspiring mortgage loan officers have to choose from.
The gold standard
The Mortgage Bankers Association has been providing education for more than 50 years, and started its School of Loan Origination almost 20 years ago, making it one of the longest-running options on the market.
The fully online program, live and instructor-guided, runs five times a year and teaches students how to originate residential mortgage loans. Over the course of 12 two-hour sessions across four weeks, the school explains how to originate compliant and quality-based mortgage loans to minimize risk of repurchase and the number of "touches" on the file, according to the MBA's website.
The course begins with an overview of the mortgage lending industry and the originator's responsibilities within it. Subsequent topics include: regulations that govern origination activities; traditional and non-traditional mortgage products; and pricing and rate locks. The course ends with a series of case studies for students to practice what they learned, according to the MBA's website.
It costs $1,000 for MBA members and $1,500 for nonmembers.
The MBA encourages people who don't know much about the industry but are interested in mortgages to take the program, as it's designed for new and aspiring mortgage loan originators, loan officer assistants, processors and underwriters or closers who are interested in moving into an origination role.
"We do see people with five, eight, 10 years of experience take the course," said David Upbin, vice president of education and strategy at the MBA. "Maybe 60%, 70% of the classes is stuff they already know but you still see students with solid industry experience walking away with nuggets of new information that will allow them to do their job more efficiently."
The MBA also offers its services for private use as an alternative to in-house training. Lenders can adjust the program and its teachings based on their needs, Upbin said.
Industry professionals can earn a Certified Mortgage Banker designation through the MBA as well.
"The CMB program is the most respected certification in our industry," said Brendan McKay, co-founder of the Broker Action Coalition. "That is the gold standard of certifications for someone in the mortgage industry, specifically a mortgage originator."
UWM's broker program
United Wholesale Mortgage's education program, BrokerX, is one of the newer ones to hit the market, launching at the end of 2024.
Like the MBA's program, anyone can join BrokerX, and while UWM hopes graduates pick brokerages that partner with the lender, there is no requirement to do so. UWM's mission with BrokerX is simply to bring more people into the mortgage business and wholesale channel.
"We believe that everybody should get a loan through the wholesale channel," UWM Chief Growth Officer Desmond Smith said. "There's two ways for that to happen: we get more people from retail to join wholesale, or we bring and create new [loan originators] in the wholesale channel."
BrokerX is a five-week program primarily conducted online through Nationwide Multistate Licensing System-approved webinars, tutoring sessions and practice tests. In the final week of the program, UWM flies students out to its headquarters in Pontiac, Michigan, for three days of in-person training, which includes role-playing, mock phone calls and networking with loan originators, according to the lender's website.
The program, made for unlicensed brokers, costs $399, but $100 rebates are available for those who submit their NMLS Secure and Fair Enforcement for Mortgage Licensing Act exam results to OnCourse Learning, a provider of mortgage education and training.
UWM also provides further education for licensed brokers. The lender offers more than 40 different classes along a variety of different paths depending on experience. Some of the topics covered include artificial intelligence, social media and underwriting, Smith said.
Nexa University, a school for licensed originators
Nexa Lending's program, Nexa University, is different from most other programs in the country, as it's for licensed loan originators.
Nexa University opened its doors about five years ago when there weren't very many programs designed for licensed loan officers. The company's recruiters wanted to hire loan officers new to the industry, but Nexa didn't want its name tarnished by loan officers who did not know what they were doing, and thus Nexa University was born.
"When I was a brand new loan officer with no training, I ruined my first couple loans. It was a terrible experience for those consumers," Nexa CEO Mike Kortas said. "If we were going to hire people new to the industry, that was fine, but we wanted to make sure they know how to actually prequalify a loan, and had an experienced loan officer there to help them do that. And then, of course, it grew."
Students, who are usually new to the industry or lack production, gain access to Nexa's online training module system and the 12 coaches with more than 300 years of combined experience. Live learning sessions take place once per week, but coaches are available for 12 hours every weekday and four hours on Saturdays.
To graduate, students must close at least six loans with Nexa, which typically happens in about six months. Kortas has seen students graduate in as little as two months, but it takes some more than a year. Students can also stay in the program until they are ready to close loans on their own.
Nexa University does not have a flat cost like many other programs, instead instructors earn a percentage of their students' commission from the loans they close. The instructors take 75 basis points for the first six loans, 55 to 65 basis points for loans seven through nine and 45 to 55 basis points once a student closes 10 loans.
"That's the cost of getting training, for somebody to be available to you 24/7," Kortas said. "It's the cheapest education you can get for a six-figure income."
The program used to cost $250 a month, but now Nexa asks students to sign a $5,000 promissory note, which is forgiven upon graduation from the program or if a student leaves the industry altogether. It was instilled three years ago to prevent other brokerages from sending their new hires to Nexa for training.
"I was sick and tired of training my competitor's loan officers," he said. "If you don't want to pay it, don't join us. ... If somebody leaves the industry, I'm not going to charge them for it, I don't care. But if they go to one of the competitors, I'm absolutely going after them for it."
Some question the validity of this, as companies would risk losing their employees by exposing them to Nexa's tools and top-class recruiting.
"Becuase they have zero training whatsoever," Kortas said in response. "And because they would provide leads. Those other companies, they say, 'Go there, take the training real quick and then come to us.' Because they actually provide leads ... and as a company, we don't do that."
Many of Nexa's top originators come from the program, but how successful a graduate becomes is entirely based on their desire, motivation and work ethic, Kortas said.
PennyMac's in-house program
PennyMac runs a classic in-house program, in which every student is an employee of the lender.
PennyMac primarily hires experienced loan originators, who then take a six-week course, but the few new, unlicensed originators it brings on are put through a 12-week program.
The first month of the 12-week course is focused on passing the NMLS exam. The first-time pass rate typically hovers around 55%, according to the NMLS website, but PennyMac employees pass on their first attempt at an 85% rate, PennyMac managing director, retail division Carl Illum said.
The lender then teaches new employees about its systems and programs, how to make presentations, how to follow up on leads and keys to success. Trainees also shadow top-performing loan officers. At the end of the program, the employees move on to a normal sales team.
While employees don't know everything about the business upon graduation, they have access to trainers, managers and a chatbot when complications arise.
"When they leave graduation, they're prepared for 90% to 95% of the situations that might come up," Illum said. "For those one-offs or weird situations, that's when they can go to the site trainer, that's when they can go to their sales managers."
As employees of PennyMac, they are paid during the training program.
"My advice to someone looking to break into the industry," McKay said, "would be to find a home...that the leaders have the time and the resources to properly train you, because it can be brutal. If you're at 100% commission, you can go a while without getting a paycheck, and if you have a salary, it's most likely not going to be a ton of money. This is an industry where it can be tough for the first couple years while you get your footing, but can be extremely lucrative over time."
