Which criterion is essential for MLO license approval?

Passing the national and state components of the licensing exam is essential for MLO license approval because it demonstrates that the applicant has the necessary knowledge and understanding of mortgage laws, regulations, and practices required to operate as a Mortgage Loan Originator. This examination ensures that MLOs are equipped to handle the responsibilities of the role, including advising clients, processing loans, and adhering to compliance standards. Successfully completing both components is a mandatory requirement in order to be licensed.

Other criteria, such as residency programs or prior work experience, might enhance a candidate's profile, but they are not universally required for obtaining a license. Similarly, while submitting a personal statement can be part of the application process for certain professions, it is not a standard prerequisite for MLO licensing. Thus, the successful completion of the relevant exam components is the key criterion for licensure.