Should You Expand Your MLO License to Another State in 2025?

As a mortgage loan originator (MLO), in a shifting real estate market, many MLOs are considering a strategic question: Should I get licensed in additional states? With tight inventory and evolving buyer trends, expanding your licensing could open new doors—but it’s not a decision to make lightly. Here’s a breakdown of the pros, cons, and key considerations to help you decide if multi-state licensing is right for you.

Why Consider Multi-State Licensing?

Expanding your license to additional states can unlock new opportunities, especially in a competitive market. Here are the top benefits:

1. Increased Lead Opportunities
   Being licensed in multiple states expands your reach. Whether through online leads (Zillow, Facebook ads) or realtor referrals, you can connect with clients relocating or buying across state lines.

2. Tap Into Migration Trends
   Remote work and lifestyle changes are driving migration to states like Texas, Florida, and North Carolina. A License in high-demand states lets you serve clients moving from your primary market.

3. Stronger Referral Networks
   Real estate agents value LOs who can work with clients wherever they go. Multi-state licensing can turn one-off deals into lasting partnerships.

4. Diversity Market Risk
   If your home state faces a slowdown—due to policy shifts, affordability challenges, or seasonal trends—other states may remain active, balancing your pipeline.

What Are the Challenges?

While the benefits are compelling, multi-state licensing comes with hurdles. Consider these carefully:

1. Licensing Costs
   Each state has its own fees, education requirements, and renewal processes. If you’re not closing enough loans in a state, the costs may outweigh the benefits.

2. Regulatory Complexity
   Every state has unique rules on fees, timelines, and disclosures. Staying compliant across multiple states requires diligence and organization.

3. Learning New Markets
   Licensing alone isn’t enough. To succeed, you’ll need to understand local property taxes, loan limits, and market nuances to avoid missteps with clients.

4. Managing Continuing Education (CE)
   Multiple licenses mean tracking and completing CE for each state, which can be time-consuming and complex.

Where’s the Demand in 2025?

Based on 2024-2025 migration trends (sourced from census.gov), certain states are seeing strong inbound growth, making them prime candidates for expansion:

• Texas

• Florida

• North Carolina

• South Carolina

• Arizona

• Tennessee

Pro Tip: Start with a state bordering your current market. Overlapping referral networks and marketing efforts make expansion smoother.

How to Approach Multi-State Licensing Strategically

Multi-state licensing can boost your business, but it’s not a “set it and forget it” move. Here’s how to do it right:

• Start Small: Focus on one or two states where you already see demand or have strong referral partners.

• Stay Compliant: Invest in tools or staff to track state-specific regulations and deadlines.

• Know the Market: Build relationships with local agents and study market trends to offer informed guidance.

• Evaluate ROI: Regularly assess whether the loans closed in a state justify the licensing costs.

Final Thoughts

Expanding your MLO license to additional states can be a game-changer, but it requires strategy and focus. By targeting high-growth states, leveraging existing networks, and staying on top of compliance, you can grow your pipeline without overextending yourself. Take it one state at a time, stay local-minded, and scale thoughtfully to make the most of this opportunity.

Ready to explore multi-state licensing? Check state licensing requirements on the NMLS Resource Center or connect with your network to identify the best markets for your business.

Learn more about multi-state licensing. Visit our Multi-State Licensing Resources