Among other qualification requirements, mortgages will have credit score requirements. For example, the minimum require score for conventional loans is But the FHA loan program allows for credit scores of So if low credit continues to dog you, an FHA loan might be your best bet.
But remember, lenders may also have different requirements based on other factors such as your down payment amount or income. Another option that prospective homeowners with bad credit can take is purchasing a home with a co-borrower. Having bad credit is not the end of the world. It still may be possible for lenders to give you a loan, provided your credit score is not too low.
But be aware that you may pay a higher interest rate and more fees since you are more likely to default fail to pay the loan back. That means opening accounts frequently, running up your balances, and paying on time or not at all can impact your credit score negatively.
Let me know if you have any other questions. Is there a certain amount of time I need to wait after BK before applying for licensing or will a letter of explanation suffice. There are no rules that a company not hire you because a Chapter 7 Bankruptcy discharge. Same goes with licensing. Most states like that you have filed bankruptcy because you are now debt free and have no liabilities. There are certain states like Connecticutt that has a one year mandatory waiting period after a Chapter 7 Bankruptcy discharged date and Oregon where it has a five year waiting period after a Chapter7 Bankruptcy.
If you are looking for a remote loan officer position with a great national mortgage company with chances of advancement, please contact me at [email protected]. Hi Gustan! Thanks for all the helpful info you have provided. I live in Louisiana and am interested in getting licensed. However, i split with my ex earlier this year and went through some financial trouble with also being laid off from my job. I am planning on filing a chapter 7 soon and would definitely be interested in hearing your thoughts about when is the best time.
My credit has fallen below a and i do have several collections and charge offs right now. I would also like to hear more about remote loan officer positions that you may have available. Credit scores do not matter with regulators. Bankruptcy is good. A bankruptcy is a federal law that enables consumers to get a fresh financial start. You will have no problems with getting licensing with a recent bankruptcy.
Connecticutt requires a one year waiting period after a bankruptcy. Oregon has a five year waiting period. All other states have no waiting period requirements. You should be fine and have no issues if you file bankruptcy with getting licensed. I am taking applying for my license and I live in New Jersey. I have a few late payments, but mainly my credit is poor from being late student loans and have my credit cards maxed out.
I have about 7 cards maxed out. Will I be okay? Is Colorado one of the States that care about credit score? Credit Scores does not matter. You can have late payments in the past year and as long as you are current then you are alright. Worst case scenario, if a regulator gives you a hard time, you can enter into a payment agreement with the creditor and that will resolve it.
Thank you for the article. I will be retiring from my current job soon. I am seriously taking steps towards becoming a MLO in California. Thanks for the info. You should be solid. The very BEST to you and your endeavors. I just started with them and I love these people!! They have been very responsive and respectful!!
My credit score had went up seventy points in less than a week!!! Thank you!! I am currently a Loan officer, I am licensed in MN. I am looking into filing bankruptcy, however do not want to lose my license. Do you know will they revoke a license if I do file? Does it matter if it is a chapter 7 or 13?
Actually filing Bankruptcy is good when it comes to licensing. The only two states there are issues with if you were to get licensing is Oregon and Connetticut.
However, renewing licenses is no issue. You need to let NMLS know and upload your discharged papers. You are set to go and I would not worry. Hi, I actually had my license previously and let it expire when I went to the operations side for 6 years thinking I would never go back.
However, I have decided I do want to go back and have to retake test and apply, etc. Can anyone help with this? I have some collections in the last year and a judgement from that I could get in a payment plan on. I just can pay the judgment in full. Any help would be greatly appreciated! You are correct. Texas is one of the toughest states when it comes to derogatory credit. As long as you have a written payment plan established with the creditor you should be fine.
If you are interested in a career opportunity as a remote loan officer with us, please contact Michael Gracz at [email protected]. Will WA strip me of my license because of this? Gustan, I have to say I love this thread and it gave me the push I needed to get into mtg. I really want to be licensed in TX but am worried about them denying my license.
Any advice would help so much!! Thank you! Connecticutt used to have a one year waiting period after a discharge. You are all state in getting your state licenses in any state so no need to worry. The very best to you and your family. No judgments or tax liens. How difficult would it be to get licensed in Washington in ?
No problem. Nothing to worry about. You will not have a problem getting your NMLS license. The best of luck to you. Since then I have made on time payments with one auto loan , one unsecured credit card card, and One retail card. Could they deny me employment? Bankruptcy is a federal law that has been created to help consumers in debt get a fresh start with their financial life. A company cannot discriminate and not offer you a job due to your bankruptcy.
You should be fine. Maybe the company wanted the circumstances that led to your bankruptcy. Thank you Gustan! Another question for you. Is it a conflict of interest for a mortgage broker or loan officer to work deals for a spouse or relative?
As a loan officer, you cannot do your own loans. You can do loans for relatives but not your own. My credit score is not poor, however I have several collections about 35k that was charged off back in I have not re-established my credit at this point so the only credit on my report is negative.
What do you feel the likelihood is that I will be approved by at least 1 of the 4 states? I need to be licensed to continue working where I am at and to start paying on the Debt Management Plan that I recently set up to work towards financial wellness. Thanks for your help! I dont think you should have any issues with the above states. Credit scores does not matter. I had really bad credit when I applied for my licenses. Best of luck to you. Email me at [email protected] if you have any questions.
Do not hesitate to contact me if you have any other questions or are seeking an employer. Always looking for great talent. Have a great day. Of course. Only two states have issues. Connecticutt has a one year waiting period and Oregon has five years. Both CT and OR requiring waiting period is illegal. Best of luck to you and post any questions you may have. I would really like to get back in this carrier field since this was something I really enjoyed doing. I would get your child support and back taxes on a payment plan and you should be fine.
What type of bad credit do you have that you are concerned about. Many loan officer candidates worry about low credit scores. Regulators do not care about credit scores. It is totally fine for you to have late payments in past 12 months and you are caught up.
It is also fine to have outstanding tax liens and judgments and be on a payment plan. Bankruptcies do not affect anyone getting a licensed. Actually bankruptcies are good because its a federal law that gives consumers a fresh start.
Please be more specific where I can hopefully guide you the right way. Most states are reasonable. California does even look at credit and is extremely lenient. I have remote loan officer positions available.
Please email me your contact information at [email protected]. Do you have a book of business? How do you get your leads? We are direct lenders licensed in multiple states and specialize in government and conventional loans with no overlays.
We also broker loans on non-qm loans, bank statement loans, and other alternative financing loan programs. I applied for the license in Nevada, and got a notice saying I have to submit documents for credit report clarification. Not sure what that means…. Thank you so much I was just offered a position.
I am waiting for their licensure team to contact me back and let me know. Hi Gustan Cho, do you know if NY is strict with the credit , bunch of lates, charge offs and collections.
Last year during hurricane Irma I had loss of employment and stopped paying my credit cards, about 6 of them. My credit dropped from the s to the mid s. Should I be concerned? I look forward to your response. Thanks in advance. Florida has gotten tougher with credit. Another option is file for bankruptcy. Contact me if you have any questions. Using this forum is fine too.
Due to loss of employment in mid, I missed a few car payments…also I have a maxed out credit card. My credit score is in the mids now.
But how strict is Washington state nowadays? From what you are telling me, you are going to be fine. Regulators do not care about credit scores nor late payments. I want to become a Mortgage Consultant in Pennsylvania and I have very bad credit. Is this state strict with the credit review process? Bankruptcy is no problem. Bankruptcies is a federal law to benefit consumers for a fresh financial start.
However, not all states have strict derogatory credit rules. You will have problems in certain states. What state are you planning on getting licensed? Worst case scenario you may need to enter into a written payment agreement with the creditor.
I am trying to get a Mortgage Originator licence in Delaware. How strict is Delaware? Every state has its own bad credit guidelines. NJ, California, Arizona, Indiana is very lenient on collections. I would ask the regulator if you were to set up a written agreement and small monthly payment plan, if that would suffice. Bankruptcy is always an option as well. How strict is Utah and CA. California is no problem. You can get licensed in California with outstanding collections, judgments, tax liens, charged offs, late payments.
I am not too familiar with Utah. As long as you are paying on them, it is fine. They may ask you for a letter of explanation.
As long as you are behind and are still making payments, you should be fine and have nothing to worry about. Please let me know on your progress so I can share it with our viewers at Gustan Cho Associates. If you are looking for a remote loan officer opportunity with a direct lender with no overlays, please contact us at [email protected]. The very best to you and your career. Talk to you soon. California you are set. Utah should be fine as well.
Please keep in touch and let us know how it goes. Talk to you soon and the very best to you. Can you please advise? Thanks for your response?
Collections, student loan default, repo; therefore, low score credit. Credit scores do not matter. Late payments do not matter. Collections, charged-off accounts, repossession may matter on certain states. Ok, thanks a lot for your information. This gives me an idea what to do, and make a plan. I will continue following up your blog.
Will this be an issue? Bankruptcies does not matter. It is a federal law that gives consumers relief. As long as you have no late payments and no negatives you will not have any issues.
Arizona is like California where they are pretty lenient with bad credit. My associate George Makoutz is a direct lender with no overlays on government and conventional loans. Please email me your contact information and I will forward it to George.
Gustan is the man! Answer to my prayers. When I get licensed can I work for you? What does your compensation plan look like? California takes longer than any other states.
It can take 2 to 3 months. Thanks for keeping us updated on Utah. Hi Andrea, how long did it take for them to approve your license in CA? I live in South Carolina, I have a judgement against me but credit score is I have passed the test can I get a license? I would apply for your license. Judgments are the worst credit you can have.
If the regulators say something, you may need to enter into a payment agreement. Or you may need to file bankruptcy;. I have good credit but had a foreclosure in I have been trying to find the guidelines for Texas in regard to foreclosure but have found nothing. Do you know about foreclosures? Gustan, Thanks for the blog posts. I started studying for my Mortgage Loan Officer test, and when I read the credit requirements for my state of Ohio I almost quit.
I found your blog post, and after reading it I decided to give it a shot. I passed my exam the first time and got my Ohio license. Thanks again! Congratulations Travis. You made a great career choice. You can help many families and earn a six figure plus income. Keep me posted on how you do. Thanks for you sharing your experience.
Talk to you soon, my friend. Hi Travis, I have poorer credit and was wondering what your credit score was when you got your license? Hi, do you have any experience with NC and SC? Credit score is terrible due to high balances and some late pays that have resulted from hardship. Medical collections do not matter. Late payments are fine as long as you are making an attempt or just behind.
Outstanding collections and charge off accounts are fine in most states. Some states are more strict than other. Bankruptcies and foreclosures do not matter.
NC should be good. I dont know too much about SC. I am licensed in Florida and NC, and I would say that I have fair to slightly less than fair credit, though not due to foreclosure, late payments, bankruptcy, or judgements, but due to high balances on credit cards that I use to fund a separate business. Would this create issues in the other states that I am currently pending review? Your high credit balance will not matter.
You will have no issues. You should get licensing in all 50 states with lower credit scores due to high balance. Contact us if you have any further questions.
What type of bad credit do you have? All state regulators do not care about credit scores. Michigan is pretty lenient. Good morning. Sorry for the delayed response. I have loan officers in our company who got licensed in Michigan and other states with outstanding collections and charged off accounts.
However, states like Florida used to be fine with collections but are now asking for it to either be paid, have a payment plan, or have a bankruptcy.
Many states are getting tougher with collections where they were lenient in the past. Midical collections are normally exempt. However, if worse comes to worse, you may have to enter into a payment agreement. I think it should be fine but do not want to mislead you if they changed their policy or you end up with an examiner who is a stickler. Please let us know what the outcome is so I can advise future viewers.
The very best luck to you. Do you have to have good credit for the state of Maryland, I have a few accounts that are in collections but i am in payment agreements with some accounts.
As long as you have written payment agreements with outstanding collection accounts, you should be fine. There is no credit score requirements. Your credit scores do not matter when apply for NMLS state licensing. I am considering getting my license in Florida, I have a few accounts which are now in collections including medical bills and money that I owe to my University. Is there still a chance? My score is almost Florida is getting tougher with credit.
Medical collections are normally exempt. It will be up to the examiner you get on how anal they want to be. Some are absolute assholes while others will give you a pass with a good letter of explanation. I recently worked for a licensed mortgage banker in sales as a telemarketer. My job was to generate leads for out licensed loan originators. I worked there for a year before I decided to apply for a loan originator position.
My boss said they put you through the classes. I applied, got denied, and have no idea why. What else could I be missing to get a loan officer position? Should I get licensed on my own and apply somewhere else? You should have no problem getting your NMLS license. Once you get your license, contact me at [email protected] or text me at I can hire you and welcome you to our growing team.
Just go ahead and get your 20 hours done and get your license. We offer remote loan officer positions and advancement opportunities. What state are you based in? I just read that you have to be sponsored before getting your license. Credit is a challenge, but I just finished my course and will try to take the exam in a couple of weeks. I would love to chat about the possibilities of all stated.
Thank you for posting your comment. Georgia is one of the states you would need a sponsor during the licensing process. Most states let you get licensed without a sponsorship by an employer. My credit has gone up…now Would I gave a fair shot at getting my license. Medical collections should not matter. You may get a pass on it with a good letter of explanation.
It depends on the examiner you end up with. However, worse case scenario you may either have to get a written payment agreement or file bankruptcy and get it wiped off. I went through a divorce 4 years ago that left me with 3 repossessions, one paid in full and two that are charged off.
You should be fine with Alabama. Thank you for your comments. Wish you the very best. Please do not hesitate to reach out to us if you have any questions. Please update us on your career.
Again, the very best. Any idea how NY handles it?? My credit is below had some issues with my mortgage and some medical collections. Medical collections are normally exempt for most states. Late payments and credit scores do not matter as long as you are caught up. Does Florida, Georgia or NC considerVerizon collection or cable bill collections a item that they will make you pay off?
Question about bankruptcy: I know you said in an earlier post that bankruptcy should not be an issue. Has that changed since last year? Also do I need to write an explanation letter if I do file for bankruptcy? Also, if one state denies me a license, does that affect my existing licenses? I have 4 licenses right now. Bankruptcy is fine. You do need a letter of explanation but bankruptcy is a good thing. It is a federal law that helps consumers have a fresh start.
The only two states you will have an issue is Connecticut and Oregon. Connecticut requires a one year wait period and Oregon a 5 year waiting period. I filed a chapter 7 bankruptcy two years ago for a small amount and have since repaired my credit and have several lines of credit in good standing.
Bankruptcies are good for those who are in debt. It is a federal law that enables consumers to get a fresh financial start. You will not have any issues with any states in getting your NMLS license. The very best to you and your new career. I am in the process of accepting an offer of employment for a larger bank. I filed chapter 7 in at the age of 21, due to some personal issues.
I started building credit the day of my discharge, was ironically approved for a credit card the same day. I recently bought a home, and have high credit limits with low usage.
I do however have many inquiries from trying to establish credit. Should I be concerned with my licensing? Hello , I was wondering if I should disclose my misdemeanor petty theft charge from 11 years ago that were expunged. Any recommendations? If the record is expunged then there is no reason to list it. Why create and open up a can of worms.
I have 2 late payment and collection history last year and a credit card balance 9k now. But my credit score still shows Do you think this will affect my credit check background to pass? You have nothing to worry about. Regulators do not care about credit scores or payment history nor credit card balances. Also, California is one of the most lenient states when it comes to credit. How hard is it in the state of Kentucky to get nmls for a bank position. Will this enable me from Getting the job?
You do not need an NMLS license if your are working for a bank. You just need to be registered. NMLS has nothing to do with dealing with registered loan officers. You would need to contact the bank directly. They set their own standards.
I am in Florida with 3 charge-offs and 3 collections reporting that are about 6 years old. Any suggestions on what states to apply? I was reading California DBO criteria, and they talk about credit being a factor of denial, so I am a bit concerned with applying there.
Thank you for your help! Credit scores and late payments do not matter. However, you may need to pay those charged off accounts or enter into a written payment agreement.
You see, I did not just have bad credit, I had really bad credit. My background was that I owned, operated, and managed 7 apartment complexes which consisted of just under 3, units and had over employees. My credit report was dozens of pages of bad credit. Consisted of outstanding unpaid collection accounts, judgments, charge-offs, late payments, and any other derogatory credit that you can think of.
This was because I did not want to go through the stress of studying and preparing for my NMLS Test and go through the licensing process to get told that I do not qualify for my mortgage license due to my very poor credit. Here I was, studying for the national NMLS exam for the next four weeks, investing more than 10 hours per day, 7 days a week with the uncertainty of not knowing whether I will ever get my license.
I Googled search every day on the internet looking for answers on whether you can become a loan officer with bad credit and got conflicting answers.
I must have contacted over three dozen states. I talked to their mortgage licensing division and got the same answer that they could not give me the answer to my question. The next state I applied for was the state of Florida. Both state regulators wanted to see a letter of explanation with regards to my poor credit, open outstanding unpaid collection accounts, judgments, and other derogatory credit information.
I have also not filed my personal and corporate income taxes since because of financial constraints. The IRS eventually helped me complete all of my returns I will write about how the IRS and special agent John Hedin, who turned out to be a great friend of mine, helped me with being compliant with my corporate and individual taxes and do my tax returns on a later blog.
Here I was now very confident that I can now become a mortgage loan originator in any state with bad credit, however, that is not the case. I live in Kenosha County, Wisconsin which is the border of Wisconsin and Illinois and my branch office is in Illinois, which is about an hour from where I live.
I just assumed it would be a cakewalk because I had no issues with the state of Illinois and the state of Florida. The reason I do not qualify is that I have multiple outstanding judgments which are recorded on Kenosha County public records:. Also that the lenders who were the judgment creditors were leaving me alone. The mortgage licensing investigator told me that the unsatisfied judgment needs to have a written payment agreement. She told me NO. I told her that I could not do that.
I spoke with the supervisor and it was like talking to a brick wall. Yes, you can become a loan officer with bad credit depending on the state you apply to. This helped me.
I feel a little my confident about getting my license. No worries. You will do fine. Good evening. First I would like to say thank you so much for taking the time to create the blog with all that very helpful information. I am a licensed loan originator in the state of Florida for many years.
I have very severe sleep apnea and it causes me to be exhausted every day. The surgeries were an absolute necessity to try to restore some decent quality life. There was one other medical procedure I had done recently as well. If these three accounts were to go to collection would this disqualify me from being able to renew my LO license in Florida? In most states, medical collections do not matter.
You should be fine with outstanding medical collections as long as you can provide a good letter of explanation. Feel fee to contact us if you have any other questions.
The very best to you. She had perfect credit besides the charge off. She went through credit repair and got her charge off removed from her credit report. The state of Texas looks at everything, and they check and double check so that they do not miss anything so if you are trying to get your loan officer license with bad credit, please consider getting your credit in order before starting the process of getting your license please.
I have no late payments on my record at all.. The only open accounts I have in collection are all medical.. Which was due to them switching everything in my name as soon as I turned I really want a career in this industry.
Do you think that will hold me back at all in my state? California does not even look at credit scores so I would not worry about it. Texas, Connecticut, Oregon are one of the toughest states for credit issues.
If you have any question, please feel to reach out to me. Hi Gustan, I do have 4 collections right now and credit score is and I am applying for my Oregon, Texas licenses.
Will I have issues in doing so? You will definitely have issues in Texas. California does not even look at credit scores nor credit reports so you can rest assured that it will not effect you getting you license. There are states that do care about bad credit such as Texas, Wisconsin, Oregon, and Connetticut. California does require credit checks. All state regulators are required to run a credit check on all MLO applicants. Therefore, you will be charged a fee. I have a question, what about NEW Jersey?
Thanks, Maria. There are certain states that really care about a loan officer credit scores such as Connetticcutt, Texas, Wisconsin, and Oregon. However, New Jersey does not care about credit scores. California does not even look at the credit reports. Please feel free to contact me on the number below if you have any other questions or if you are interested in a career with The Gustan Cho Team NMLS Thank you for writing this blog. I gives many confidence to chase their goals.
I had one surgery which I had a bad recovery that put me out of work for over a year. Unexpected life happens no matter how much you plan. No way to pay debts and no income to live mounted more debt. I hope Florida would be worth while to study for based on your info. All states have tightened up on derogatory credit. Credit scores do not count. Medical collections is understandable. New Jersey is like California. Connecticut is a different story. As long as your DLA was at least 6 or more months, you will have no issues.
Bad credit is a very general broad term. If you had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, that is alright. Regulators look at the candidates overall credit report and payment history. If you can be more specific, I may be able to answer your question.
I really do not know about Minnesota. Some states like Wisconsin, Connecticut, Texas, and Oregon cares about charge offs and collections where they want to see a payment plan. Connecticut requires one year after Chapter 7 Bankruptcy and Oregon has 5 years after bankruptcy discharged date.
This requirement is illegal but they still do it Once Obama is out of office, I think this will change. Thanks for the quick response. To be more specific with bad credit. It is collection and judgement and charge off for revolving debt due to joining debt consolidation program.
They just look at past 12 months payment history. I hot Florida and Illinois approved with a credit score. Save your worries on other things that matter Call or email me if you need more clarification.
I have been out of the industry for awhile, but I now would like to resume my career as a L. Will I be able to renew my previous licenses? My current FICO score is approx. Bad I know…due to a medical condition that left me unable to work and collecting disability…hence my financial state. I have been asked for an interview from a mortgage company in Missouri. My credit is poor I filed bankruptcy 2 years ago did a deed-in-lieu back in everything went bad due to Medical reasons.
Health is better but stuck with all the bills which are on my credit report. How does Missouri handle poor credit for being a loan originator. Thank you. You have absolutely nothing to worry about. You are all set. The very best on your career.
Hello, I would like to get my mortgage originator license in Colorado but am worried because I had to file a chapter 13 bankruptcy about 6 months ago. Thank you in advance! Just be timely on all of your payments to the Trustee and you will have no problems. Bankruptcies is a federal law that allow consumers start a fresh financial start in life.
The best to you. Feel free to contact us with any further questions. I was a mortgage Broker Business for over 9 years till the crash. I was scared to restart. I fell back on my second career as a medical Assistant till the hurricane Irma. I fell behind in my mortgage payments because I was told the payments would be put on the rear of the mortgage.
This was false information, all was due at once. I did a Chapter 13 for 12 months, never miss a payment. Reestablished my credit. Mortgage is current. Do you think with 12 on time payments that Im safe to apply here in Florida and tennessee? I was told by an employer after a review of my credit that I could not get a mortgage loan originator license unless I entered payment plans with all creditors in Michigan.
It has been six years since the medical problems I had resulted in an 8 month hospital stay and loss of job, apartment, credit cards, plus medical bills. I told them that on the phone. Some of the negative accounts have begun falling off and I do not want to enter into payment arrangements as that would restart the clock. My credit score is right now. I currently hold a MI Salesperson license as a Realtor and had no idea that the requirements to be a loan officer were based off credit.
Your employer is full of it. Please contact me at [email protected] or call me anytime on my cell phone at I will help you and you can even work for me. You have given me a bit of a piece of mind for my husband and I. We will be taking a hour course in the coming weeks and testing! In , I had knee surgery and could not work for some time which put some derogatory marks on our credit.
Do you personally think we will have a hard time? Please let me know what you think. Or if your outstanding collections and charged off accounts are substantial, you may want to explore filing bankruptcy. Bankruptcy discharge will not affect you getting licensed in any of the 50 states. This is what happened with me. I did not qualify at many states due to my large outstanding collections, charge off accounts, judgments, so I filed bankruptcy. I then reapplied to all of the states my company was licensed in and I got approved in all the states without a single hiccup.
My credit scores are over in less than a year after my bankruptcy discharged date. I hope this answers your questions. Let me know if you have any other questions. Is there a certain amount of time I need to wait after BK before applying for licensing or will a letter of explanation suffice. There are no rules that a company not hire you because a Chapter 7 Bankruptcy discharge.
Same goes with licensing. Most states like that you have filed bankruptcy because you are now debt free and have no liabilities. There are certain states like Connecticutt that has a one year mandatory waiting period after a Chapter 7 Bankruptcy discharged date and Oregon where it has a five year waiting period after a Chapter7 Bankruptcy. If you are looking for a remote loan officer position with a great national mortgage company with chances of advancement, please contact me at [email protected] o.
Hi Gustan! Thanks for all the helpful info you have provided. I live in Louisiana and am interested in getting licensed. However, i split with my ex earlier this year and went through some financial trouble with also being laid off from my job.
I am planning on filing a chapter 7 soon and would definitely be interested in hearing your thoughts about when is the best time.
My credit has fallen below a and i do have several collections and charge offs right now. I would also like to hear more about remote loan officer positions that you may have available. Credit scores do not matter with regulators. Bankruptcy is good. A bankruptcy is a federal law that enables consumers to get a fresh financial start.
You will have no problems with getting licensing with a recent bankruptcy. Connecticutt requires a one year waiting period after a bankruptcy. Oregon has a five year waiting period. All other states have no waiting period requirements. You should be fine and have no issues if you file bankruptcy with getting licensed.
I am taking applying for my license and I live in New Jersey. I have a few late payments, but mainly my credit is poor from being late student loans and have my credit cards maxed out. I have about 7 cards maxed out. Will I be okay? Is Colorado one of the States that care about credit score? Credit Scores does not matter. You can have late payments in the past year and as long as you are current then you are alright.
Worst case scenario, if a regulator gives you a hard time, you can enter into a payment agreement with the creditor and that will resolve it. Thank you for the article. I will be retiring from my current job soon. I am seriously taking steps towards becoming a MLO in California. Thanks for the info. You should be solid. The very BEST to you and your endeavors.
I just started with them and I love these people!! They have been very responsive and respectful!! My credit score had went up seventy points in less than a week!!! Thank you!! I am currently a Loan officer, I am licensed in MN.
I am looking into filing bankruptcy, however do not want to lose my license. Do you know will they revoke a license if I do file? Does it matter if it is a chapter 7 or 13? Actually filing Bankruptcy is good when it comes to licensing. The only two states there are issues with if you were to get licensing is Oregon and Connetticut.
However, renewing licenses is no issue. You need to let NMLS know and upload your discharged papers. You are set to go and I would not worry. Hi, I actually had my license previously and let it expire when I went to the operations side for 6 years thinking I would never go back. However, I have decided I do want to go back and have to retake test and apply, etc.
Can anyone help with this? I have some collections in the last year and a judgement from that I could get in a payment plan on. I just can pay the judgment in full. Any help would be greatly appreciated! You are correct. Texas is one of the toughest states when it comes to derogatory credit.
As long as you have a written payment plan established with the creditor you should be fine. If you are interested in a career opportunity as a remote loan officer with us, please contact Michael Gracz at [email protected].
Will WA strip me of my license because of this? Gustan, I have to say I love this thread and it gave me the push I needed to get into mtg. I really want to be licensed in TX but am worried about them denying my license. Any advice would help so much!! Thank you! Connecticutt used to have a one year waiting period after a discharge. You are all state in getting your state licenses in any state so no need to worry.
The very best to you and your family. No judgments or tax liens. How difficult would it be to get licensed in Washington in ? No problem. Nothing to worry about.
You will not have a problem getting your NMLS license. The best of luck to you. Since then I have made on time payments with one auto loan , one unsecured credit card card, and One retail card. Could they deny me employment? Bankruptcy is a federal law that has been created to help consumers in debt get a fresh start with their financial life. A company cannot discriminate and not offer you a job due to your bankruptcy. You should be fine. Maybe the company wanted the circumstances that led to your bankruptcy.
Thank you Gustan! Another question for you. Is it a conflict of interest for a mortgage broker or loan officer to work deals for a spouse or relative? As a loan officer, you cannot do your own loans. You can do loans for relatives but not your own. My credit score is not poor, however I have several collections about 35k that was charged off back in I have not re-established my credit at this point so the only credit on my report is negative.
What do you feel the likelihood is that I will be approved by at least 1 of the 4 states? I need to be licensed to continue working where I am at and to start paying on the Debt Management Plan that I recently set up to work towards financial wellness.
Thanks for your help! I dont think you should have any issues with the above states. Credit scores does not matter. I had really bad credit when I applied for my licenses. Best of luck to you. Email me at [email protected] if you have any questions. Do not hesitate to contact me if you have any other questions or are seeking an employer.
Always looking for great talent. Have a great day. Of course. Only two states have issues. Connecticutt has a one year waiting period and Oregon has five years.
Both CT and OR requiring waiting period is illegal. Best of luck to you and post any questions you may have. I would really like to get back in this carrier field since this was something I really enjoyed doing. I would get your child support and back taxes on a payment plan and you should be fine. What type of bad credit do you have that you are concerned about. Many loan officer candidates worry about low credit scores.
Regulators do not care about credit scores. It is totally fine for you to have late payments in past 12 months and you are caught up. It is also fine to have outstanding tax liens and judgments and be on a payment plan.
Bankruptcies do not affect anyone getting a licensed. Actually bankruptcies are good because its a federal law that gives consumers a fresh start. Please be more specific where I can hopefully guide you the right way. Most states are reasonable. California does even look at credit and is extremely lenient. I have remote loan officer positions available. Please email me your contact information at [email protected]. Do you have a book of business? How do you get your leads?
We are direct lenders licensed in multiple states and specialize in government and conventional loans with no overlays. We also broker loans on non-qm loans, bank statement loans, and other alternative financing loan programs. I applied for the license in Nevada, and got a notice saying I have to submit documents for credit report clarification. Not sure what that means…. Thank you so much I was just offered a position. I am waiting for their licensure team to contact me back and let me know.
Hi Gustan Cho, do you know if NY is strict with the credit , bunch of lates, charge offs and collections. Last year during hurricane Irma I had loss of employment and stopped paying my credit cards, about 6 of them. My credit dropped from the s to the mid s. Should I be concerned? I look forward to your response. Thanks in advance. Florida has gotten tougher with credit. Another option is file for bankruptcy.
Contact me if you have any questions. Using this forum is fine too. Due to loss of employment in mid, I missed a few car payments…also I have a maxed out credit card. My credit score is in the mids now. But how strict is Washington state nowadays? From what you are telling me, you are going to be fine.
Regulators do not care about credit scores nor late payments. I want to become a Mortgage Consultant in Pennsylvania and I have very bad credit. Is this state strict with the credit review process? Bankruptcy is no problem. Bankruptcies is a federal law to benefit consumers for a fresh financial start. However, not all states have strict derogatory credit rules. You will have problems in certain states. What state are you planning on getting licensed? Worst case scenario you may need to enter into a written payment agreement with the creditor.
I am trying to get a Mortgage Originator licence in Delaware. How strict is Delaware? Every state has its own bad credit guidelines. NJ, California, Arizona, Indiana is very lenient on collections. I would ask the regulator if you were to set up a written agreement and small monthly payment plan, if that would suffice. Bankruptcy is always an option as well. How strict is Utah and CA.
California is no problem. You can get licensed in California with outstanding collections, judgments, tax liens, charged offs, late payments. I am not too familiar with Utah. As long as you are paying on them, it is fine. They may ask you for a letter of explanation. As long as you are behind and are still making payments, you should be fine and have nothing to worry about. Please let me know on your progress so I can share it with our viewers at Gustan Cho Associates.
If you are looking for a remote loan officer opportunity with a direct lender with no overlays, please contact us at [email protected]. The very best to you and your career. Talk to you soon. California you are set. Utah should be fine as well. Please keep in touch and let us know how it goes. Talk to you soon and the very best to you. Can you please advise? Thanks for your response? Collections, student loan default, repo; therefore, low score credit. Credit scores do not matter.
Late payments do not matter. Collections, charged-off accounts, repossession may matter on certain states. Ok, thanks a lot for your information. This gives me an idea what to do, and make a plan. I will continue following up your blog. Will this be an issue?
Bankruptcies does not matter. It is a federal law that gives consumers relief. As long as you have no late payments and no negatives you will not have any issues.
Arizona is like California where they are pretty lenient with bad credit. My associate George Makoutz is a direct lender with no overlays on government and conventional loans. Please email me your contact information and I will forward it to George. Gustan is the man! Answer to my prayers. When I get licensed can I work for you?
What does your compensation plan look like? California takes longer than any other states. It can take 2 to 3 months. Thanks for keeping us updated on Utah. Hi Andrea, how long did it take for them to approve your license in CA? I live in South Carolina, I have a judgement against me but credit score is I have passed the test can I get a license?
I would apply for your license. Judgments are the worst credit you can have.
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