Becoming A Licensed Mortgage Originator In Texas

To become a licensed mortgage originator in Texas, you must first complete a pre-licensing course. The number of hours required for this course depends on the licensing authority: the OCCC requires 20 hours, while the SML requires 23 hours, including a Texas-specific elective. After completing your pre-licensing education, you'll need to schedule and pass the SAFE MLO exam, which covers federal mortgage-related laws, ethics, mortgage loan originator activities, and general mortgage knowledge. Once you've passed the exam, you can apply for your Texas Mortgage Loan Originator License through the NMLS website.

Texas licensing agencies: Texas-SML and Texas-OCCC

Texas has two different NMLS licensing agencies: Texas-SML and Texas-OCCC. Before applying, verify the correct agency you need to apply with to avoid any potential delays.

Texas-SML

The Texas-SML (Texas Department of Savings and Mortgage Lending) licenses businesses and individuals originating primary home mortgages for consumers to use to purchase a home. Licensure with Texas-SML requires prospective MLOs to complete 23 hours of Pre-Licensure coursework, including a Texas-specific 3-hr course. The Texas-SML MLO license fee is $45.

Texas-OCCC

The Texas-OCCC (Texas Office of Consumer Credit Commissioner) licenses individuals and businesses that issue real-estate-related consumer loans, such as secondary mortgage loans, home-equity loans, residential property tax loans, and manufactured housing loans. Licensure with Texas-OCCC requires prospective MLOs to complete 20 hours of Pre-Licensure education. These courses are required by the Texas Office of Consumer Credit Commissioner. The SAFE MLO Test can be scheduled by visiting the NMLS website. The Texas-OCCC MLO license fee is $325.

To obtain a license from the Office of Consumer Credit Commissioner, you must apply through the NMLS. The OCCC has adopted the NMLS Uniform State Test, which is required for mortgage loan originators to pass before they can be licensed through the NMLS.

Pre-licensing education requirements

Texas has two different NMLS licensing agencies: Texas-SML and Texas-OCCC. Each has its own pre-licensing education requirements.

Texas-SML Pre-Licensing Education Requirements

To obtain a license from the Texas Department of Savings and Mortgage Lending, you must complete 23 hours of Pre-Licensure coursework. This includes a Texas-specific 3-hour course that is required by the Department of Savings and Mortgage Lending.

Texas-OCCC Pre-Licensing Education Requirements

To obtain a license from the Texas Office of Consumer Credit Commissioner, you must complete 20 hours of Pre-Licensure education. These courses are required by the Texas Office of Consumer Credit Commissioner.

General Pre-Licensing Education Requirements

Before beginning the educational component of licensing, prospective Loan Officers must create an NMLS (Nationwide Multistate Licensing System & Registry) account on the State Mortgage Registry website. NMLS is a national database in which all Texas MLOs must register. After creating their account, applicants receive a personal NMLS number that will be maintained for the duration of their time working as a Loan Officer.

After your education is completed and recorded, you need to schedule an appointment to take your licensing examination at a testing facility. This is sometimes called the "SAFE test" or "MLO exam".

The SAFE Mortgage Licensing Act

The Secure and Fair Enforcement for Mortgage Licensing Act, also known as the SAFE Act, was enacted on July 30, 2008, and applies to individuals who engage in the business of residential mortgage loan origination. The SAFE Act sets out requirements for both state licensing and federal registration of mortgage loan originators (MLOs).

The SAFE Act requires that MLOs be either state-licensed or federally registered. State licensing is mandatory for individuals who are not employees of covered financial institutions, while federal registration is available to those who are employed by depository institutions, subsidiaries regulated by a federal banking agency, or institutions regulated by the Farm Credit Administration. Both state licensing and federal registration are accomplished through the Nationwide Mortgage Licensing System and Registry (NMLS), which is a national database where all Texas MLOs must register and receive a unique identification number.

The SAFE Act also establishes minimum standards for licensing loan originators, which includes whom a state must require to be licensed. Additionally, the Act outlines the Bureau's procedure for determining a state's compliance with these minimum standards. If a state is found to be non-compliant, the Bureau is responsible for establishing and maintaining a licensing and registry database for loan originators.

In Texas, there are two agencies that issue Mortgage Loan Originator licenses: the Texas Department of Savings and Mortgage Lending (Texas-SML) and the Texas Office of Consumer Credit Commissioner (Texas-OCCC). Each agency has specific education and coursework requirements that must be met before individuals can obtain their license. For example, Texas-SML requires 23 hours of Pre-Licensure coursework, while Texas-OCCC mandates 20 hours of Pre-Licensure education.

To summarise, the SAFE Mortgage Licensing Act plays a crucial role in regulating the mortgage industry by setting standards for licensing and registration of MLOs, ensuring consumer protection, and promoting fair practices in the mortgage lending process.

Registering with the NMLS

To become a licensed mortgage originator in Texas, you must register with the NMLS (Nationwide Mortgage Licensing System). The NMLS is a national database in which all Texas MLOs must register.

To register with the NMLS, you must first create an NMLS account and receive an NMLS number. This number will be your unique identifier and will remain the same throughout your career as a mortgage originator. You will need to submit your employment details and receive verification from your sponsoring employer.

Once you have an NMLS account, you will need to complete your pre-licensure education. The number of hours required varies depending on the licensing agency. Texas has two licensing agencies: Texas-SML and Texas-OCCC. Texas-SML requires 23 hours of pre-licensure coursework, including a 3-hour Texas-specific elective. Texas-OCCC requires 20 hours of pre-licensure education.

After completing your pre-licensure education, you will need to schedule and pass the licensing examination, also known as the SAFE test or MLO exam. This exam is administered by Prometric, and you can contact them directly to schedule your exam.

Once you have passed the exam, you can submit your license application through the NMLS website. As part of the application process, you will need to authorize an FBI background check and submit a credit report request through your NMLS account.

The licensing exam

Texas has two licensing agencies: the Texas Office of Consumer Credit Commissioner (Texas-OCCC) and the Texas Department of Savings and Mortgage Lending (Texas-SML). The licensing exam, also known as the SAFE test or MLO exam, is administered by Prometric.

To take the exam, you must first complete your pre-licensure education. The number of hours of education required depends on the licensing agency. The Texas-OCCC requires 20 hours of pre-licensure education, while the Texas-SML requires 23 hours, including a 3-hour Texas-specific elective.

Once you have completed your pre-licensure education, you need to schedule an appointment to take the licensing examination at a testing facility. You can contact Prometric by phone or visit their website to schedule your exam. The cost of the exam is $110.

After passing the exam, you can submit your license application through the Nationwide Mortgage Licensing System (NMLS) website. You will also need to authorize an FBI background check and submit a credit report request via your NMLS account. Additionally, you may need to schedule a fingerprinting appointment, unless NMLS already has your fingerprints on file.

It is important to note that your Texas Loan Officer License will remain in pending status until your employing sponsorship is verified with NMLS. Your sponsoring employer will need to approve the sponsorship request before you can be officially licensed.

Frequently asked questions