Lester Freeman
Becoming a mortgage loan officer in Texas can be a promising career path with unlimited earning potential, flexibility, and career growth. To get started, you'll need to complete several steps, including enrolling in pre-licensure education, obtaining the necessary licenses, and finding a sponsoring employer. The process requires dedication and a solid understanding of the mortgage industry and financial regulations, but it can lead to a rewarding career where you help people achieve their dream of homeownership.
| Characteristics | Values |
|---|---|
| Salary | The average salary for MLOs is around $75k per year as of November 2021. According to ZipRecruiter, Texas Mortgage Officers make approximately $66,000 per year on average as of November 2021. The average mortgage loan officer in Texas gets paid a base salary of $197,452 per year, according to Indeed.com. |
| Commission | The average commission for a mortgage loan officer in Texas is $11,750. In some cases, it can be over $20,000. |
| Career growth | Mortgage loan officers have limitless economic opportunity and the ability to make a difference in the lives of borrowers seeking home loans. |
| Requirements | To become a licensed mortgage loan officer in Texas, you'll need to complete six steps, including enrolment in Texas Pre-Licensure Education (PE) and licenses from the Texas Department of Savings and Mortgage Lending (Texas-SML) and the Texas Office of Consumer Credit Commissioner (Texas-OCCC). |
| Education | You'll need to complete 20 hours of NMLS-approved pre-licensing education, including 3 additional hours of Texas-specific education. |
| Exams | You'll need to pass the SAFE MLO Test, which costs $110 and has 115 scored questions, with a passing score of 75%. |
| Fees | State and federal registration and renewal fees are usually $30 each. The background check costs $36.25, and the credit report costs $15. |
What You'll Learn
The required education and training
To become a mortgage loan officer in Texas, you must complete a few essential steps, including enrolling in pre-licensure education and obtaining the necessary licenses. Here is a detailed overview of the required education and training:
Pre-Licensure Education:
Before beginning the journey to becoming a mortgage loan officer in Texas, you must first enroll in pre-licensure education (PE). This step is crucial as it provides you with the foundational knowledge and skills needed to understand the mortgage industry and its regulations. The pre-licensure education is specifically designed to prepare you for the licensing exams and ensure you meet the educational requirements for the role.
Texas-Specific Coursework:
As part of your pre-licensure education, you will need to complete Texas-specific coursework. This means that, in addition to the general mortgage loan officer training, you will also need to gain an understanding of the lending guidelines, laws, and regulations specific to the state of Texas. The Texas Department of Savings and Mortgage Lending requires applicants to complete additional hours of pre-licensing courses dedicated solely to Texas-specific content.
NMLS-Approved Pre-Licensing Education:
The Nationwide Multistate Licensing System & Registry (NMLS) is a critical component of becoming a mortgage loan officer in Texas. You will need to create an NMLS account and complete the required 20 hours of NMLS-approved pre-licensing education. This education is a standard requirement for all states and will provide you with a comprehensive understanding of the mortgage industry, financial regulations, ethics, and professional conduct.
Texas Licensing Exams:
After completing your pre-licensure education, you will be prepared to take the licensing exams. Texas has specific exams that you must pass to obtain your mortgage loan officer license in the state. These exams include the SAFE MLO Test, which is a challenging exam with a low first-time pass rate. It covers topics such as federal mortgage-related laws, ethics, mortgage loan originator activities, and general mortgage knowledge. You can schedule this exam through your NMLS account, and it comes with a fee of $110.
Criminal Background Check and Credit Report:
As part of the licensing process in Texas, you will be required to authorize a criminal background check and a credit report. These are essential components of ensuring your suitability for the role of a mortgage loan officer. The background check and credit report come with associated fees that you will need to pay.
The education and training requirements for becoming a mortgage loan officer in Texas are comprehensive and rigorous. They are designed to ensure that you have the necessary knowledge, skills, and qualifications to navigate the complex world of mortgage lending and provide valuable services to homebuyers in the state.
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The licensing process
To become a mortgage loan officer in Texas, you need to obtain a license from the Texas Department of Savings and Mortgage Lending (Texas-SML) and the Texas Office of Consumer Credit Commissioner (Texas-OCCC). Here is a step-by-step guide to the licensing process:
Step 1: Create an NMLS Account
Before beginning your education, you must create an NMLS (Nationwide Multistate Licensing System & Registry) account on the State Mortgage Registry website. NMLS is a national database where all Texas MLOs must register. After creating an account, you will receive a personal NMLS number that will be maintained throughout your career as a loan officer.
Step 2: Complete Pre-Licensing Education
To obtain your Texas MLO license, you must complete the required 20 hours of NMLS-approved pre-licensing education. This includes 3 additional hours of pre-licensing courses dedicated to Texas-specific lending guidelines, laws, and regulations. These courses are mandated by the Texas Department of Savings and Mortgage Lending and the Texas Office of Consumer Credit Commissioner.
Step 3: Study for the SAFE Exam
After completing your pre-licensing education, you should prepare for the Secure and Fair Enforcement (SAFE) exam. The SAFE MLO Test costs $110 to take and covers federal mortgage-related laws, ethics, mortgage loan originator activities, and general mortgage knowledge. It consists of 115 scored questions, and you must answer at least 75% correctly.
Step 4: Schedule and Take the SAFE Exam
Log in to your NMLS account to schedule the SAFE exam. After passing the exam, you can proceed to the next step of the licensing process.
Step 5: Submit Background Check and Credit Report
Log in to your NMLS account and visit the "filing" section. Click on the "criminal background check" tab and authorize a Federal Criminal Background Check, which costs $36.25. Additionally, you will need to authorize a credit report via your NMLS account for a fee of $15.
Step 6: Apply for Texas Licensure
Once you have completed all the above steps, you can submit your application for official Texas MLO licensure through the NMLS licensing portal. Ensure that you review the mortgage loan officer "new application" checklist to confirm that you have met all the requirements.
Step 7: Verify Employment Sponsorship
Your Texas Loan Officer License will remain pending until your employing sponsorship is verified with NMLS. This verification is completed within the NMLS portal, where you will add your employer sponsorship details. Once the sponsoring employer approves the sponsorship, your license will be officially granted.
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The average salary
The salary of a mortgage loan officer in Texas varies depending on factors such as experience, location, and the company they work for. Some mortgage loan officers make a flat salary, while others make a salary plus commission.
Indeed.com reports that the average base salary for a mortgage loan officer in Texas is $197,452 per year, with an average commission of $11,750. According to ZipRecruiter, the average salary is $66,000 per year, with the 75th percentile of earners making above $80,000 and the bottom 25th percentile making under $23,000. Salary.com reports a similar figure, estimating the average annual salary of a Mortgage Loan Officer I in Texas to be $48,579 as of November 2024, with most earners falling between $41,726 and $56,608. The Economic Research Institute estimates the average salary of a Mortgage Loan Originator in Houston, Texas, to be around $68,653, with an average bonus of $2,389.
The salary of a mortgage loan officer in Texas can also depend on the number of loans they close and the commission they earn. The commission is typically calculated based on Basis Points (BPS) per loan, with 1 BPS equal to 1/100 of 1%. For example, at 25 BPS for a $200,000 loan, a mortgage loan officer could earn a commission of $500. In Texas, rookie loan officers can expect to make an average commission of 100 to 150 BPS.
The earning potential for mortgage loan officers in Texas is promising, with some sources stating that officers can make more than $150,000 in their first couple of years, with the potential for over $20,000 in commission. The top earners in Texas can make as much as $427,263 per year, outearning senior mortgage underwriters, private bankers, and branch managers.
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The career benefits
Being a mortgage officer in Texas has many career benefits. Firstly, the earning potential is unlimited. In Texas, you could make more than $150,000 in your first couple of years, plus commission (which could be over $20,000). The average base salary for a mortgage loan officer in Texas is $197,452 per year, according to Indeed.com. The average commission is $11,750, but this can be much higher depending on the company you work for and the loan amount. For example, at a commission rate of 1%, a loan of $800,000 would earn you $8,000.
Secondly, the career offers flexibility and growth. It is a very flexible career, with the option to work from home or wherever you like, as long as you have a computer and an internet connection. The Texas real estate market is fast-paced and growing, so there is a strong demand for skilled mortgage loan officers, offering plenty of opportunities for career advancement.
Thirdly, mortgage officers in Texas often receive excellent benefits packages, which can include health insurance, work-from-home perks, a flexible schedule, an employee stock purchase plan, a 401k, and dental insurance.
Finally, it can be a highly satisfying career. Loan officers are generally highly satisfied with their jobs, and those who are excellent salespeople and are able to communicate with trust and confidence tend to enjoy particularly high job satisfaction.
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The SAFE MLO Test
Understanding the SAFE MLO Test:
Test Format and Content:
Test Registration and Scheduling:
To register for the SAFE MLO exam, you must create an online account with the NMLS. This account will be your central hub for scheduling the exam, accessing resources, and managing your license. The test costs \$110 to take, and you can choose between in-person or online test-taking options. In-person tests are conducted at Prometric Testing Centers, while online tests are proctored through the Prometric ProProctor system.
Test Day Procedures:
On the day of your exam, arrive at the testing center at least 30 minutes early with a valid, government-issued photo ID. Personal items, such as cell phones, wallets, and keys, must be stored in a secure locker outside the testing room. You will undergo a visual inspection of your clothing and workspace to ensure the integrity of the testing environment.
Passing Requirements and Retake Policy:
To pass the SAFE MLO Test, you must answer at least 75% of the scored questions correctly. This equates to getting 86 out of 115 questions right. If you do not pass on your first attempt, don't worry; you can retake the exam. However, there is a waiting period before you can retake the test, so be sure to plan accordingly.
Test Preparation:
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Frequently asked questions
The real estate market in Texas is growing, with home prices rising by 20.5% in the past year. This means there is a steady flow of business for MLOs. The average mortgage loan officer in Texas gets paid a base salary of $197,452 per year, with the potential to make over $150,000 in your first couple of years alone. There is also flexibility, career growth, and the opportunity to help people finance their dream of property ownership.
You will need to complete a few steps, including enrolment in Texas Pre-Licensure Education (PE) and obtaining licenses from the Texas Department of Savings and Mortgage Lending (Texas-SML) and the Texas Office of Consumer Credit Commissioner (Texas-OCCC). You will also need to complete 20 hours of NMLS-approved pre-licensing education, including 3 additional hours of Texas-specific education.
First, create an NMLS (Nationwide Multistate Licensing System & Registry) account on the State Mortgage Registry website. Then, complete the required education and pass the SAFE MLO Test. Finally, submit your application for official Texas licensure through the NMLS licensing portal.
There are various fees associated with becoming a licensed Mortgage Loan Officer in Texas, including state and federal registration and renewal fees, exam fees, and the cost of education courses. In total, you can expect to pay around $221.25 plus the cost of education to obtain your license.
