After several lean years marked by rate hikes and a sharp pullback in origination activity, the mortgage industry is showing signs of recovery. Enrollment data from online licensing education providers offers one of the clearest early indicators of where the industry is headed, and right now, the trend lines are pointing upward.
Jesse Kennedy, Vice President and Director of Operations at 24hourEDU, an NMLS-approved provider of pre-license and continuing education for mortgage professionals, is seeing it firsthand. Companies are hiring again and bringing on more loan originators, driving a visible uptick in course enrollments. “There are more and more individuals looking to get their license because the market is starting to turn,” Kennedy says.
A Market Finding Its Footing
The past few years were difficult for mortgage professionals. When rates climbed sharply from their pandemic-era lows of 2–3%, origination volume dropped, and many loan originators either let their licenses lapse or exited the industry altogether. That cycle now appears to be reversing.
Kennedy describes the current environment as stabilizing. Mortgage rates declined over the last three quarters as the Fed cut rates, though they haven’t fallen as far as some projected. “There’s always going to be a little volatility,” Kennedy says, “but so far it’s been fairly stable.”
That stability, even if modest, appears to be enough to draw people back. The pattern mirrors what happened during the pandemic boom, when low rates triggered a surge in new originators entering the field. Now, with buyers and sellers slowly returning to the market, lenders are staffing up again, and prospective loan originators are responding.
Who Is Getting Licensed Right Now
The profile of today’s licensing candidate is broader than many might expect. According to Kennedy, the student base at 24hourEDU spans several distinct groups. First-time entrants to the mortgage field make up a significant portion, but the platform is also seeing a notable wave of real estate agents looking to add mortgage licensing to their existing credentials, a move that allows them to serve clients more comprehensively through the transaction process.
A third group is also emerging: professionals who previously held a mortgage license, or who worked in a bank setting, and are now pursuing individual licensure for the first time or returning after a lapse. Many of these returning professionals expect rising demand ahead and want to be positioned before the market accelerates.
Geographically, the activity is concentrated in the country’s most populous states. Florida, Texas, and California are generating the highest enrollment volumes, a pattern that tracks closely with where housing demand and population growth remain most active.
The Barriers That Catch Candidates Off Guard
Despite the relatively accessible path to licensure, a number of candidates still struggle to complete the process efficiently. The most common issue is straightforward but persistent: candidates do not put in enough preparation time before sitting for the SAFE MLO national exam.
Kennedy says students who invest time in exam prep coursework, practice questions, and course material review consistently pass on their first attempt. Those who rush through the process often do not. “Our students who put in the time and study the material, they’re passing the test on their first try,” he says.
A more procedural hurdle also trips up a surprising number of candidates: obtaining their NMLS ID number before starting the course. While the process is straightforward, it represents an administrative step that candidates often overlook in their eagerness to begin.
One broader misconception also shapes who enters the pipeline in the first place. Many people assume that becoming a mortgage loan originator requires a college degree, a background in finance, or a real estate license. None of that is accurate. The actual requirements are minimal: candidates must be 18 years old, complete a national course and any required state-specific course, and pass the SAFE MLO national test. At that point, they can apply for their license.
How 24-hourEDU Fits the Market
The NMLS-approved education space includes a range of providers, from large established names to newer online platforms. Each offers a different combination of pricing, format, and supplemental resources. 24-hourEDU has positioned itself primarily on price and bundled value. The platform’s 20-hour national pre-license course is priced at $189, which includes 1,000 exam prep questions, a feature that competing providers often charge an additional $150 or more to access. State-specific courses, which some schools sell separately for around $75, are included at no additional cost with the national course.
Kennedy notes the platform also includes bonus marketing videos for new originators and a US-based support team available by phone. After completing coursework and passing the exam, most graduates move directly into the sponsorship process, aligning with either a national lending partner or a local company that will activate their license and serve as their employer for loan origination.
Expanding Toward Full National Coverage
Launched a few years ago, 24-hourEDU has grown to cover nearly all 50 states for pre-license education. The one remaining gap is Utah, which recently revised its requirements from 15 hours of state-specific education, the highest of any state, to five hours. Staff is currently building the updated course, and once complete, the platform will have full national coverage.
Continuing education is also a core part of the business. Most states require eight hours of annual CE for license renewal, typically structured as seven hours of federally mandated content and one hour of state-specific material, though some states, like New Jersey, require a two-hour state component.
What the Next Year Could Bring
The outlook for the next year depends heavily on the rate environment. As rates decline, more buyers enter the market, and homeowners with existing low-rate mortgages become more willing to sell and take on new financing. That increased activity drives demand for loan originators to handle both refinancing and new purchase applications.
Rates are unlikely to return to the historic lows seen during the pandemic, and Kennedy is not projecting that outcome. But even a gradual downward trend, combined with a housing market that is slowly normalizing, could sustain the enrollment momentum already underway.
For real estate professionals watching workforce trends in the mortgage space, licensing enrollment data offers a useful forward-looking signal. When people start investing time and money in getting licensed, they are betting that demand is building. Right now, a growing number of them appear to be making that bet, and the hiring patterns at lending firms suggest they may be right.
About the Expert: Jesse Kennedy is the Vice President and Director of Operations at 24hourEDU, an NMLS-approved provider of pre-license and continuing education for mortgage professionals. The platform covers nearly all 50 states for pre-license education and serves candidates ranging from first-time entrants to returning licensed professionals.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
