How to Become a Mortgage Loan Officer in Texas

Want to become a mortgage loan officer in Texas? Here’s what you need to know. Find out the education and experience requirements, then start your career in the Lone Star State!

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Introduction

Anyone thinking about becoming a mortgage loan officer in Texas should be aware of the stringent requirements set forth by the Texas Department of Savings and Mortgage Lending before considering a career in this field. Although the specific steps may differ slightly depending on your individual circumstances, the general process is as follows:

1. You must first obtain a license from the Texas Department of Savings and Mortgage Lending.
2. To do this, you must complete 20 hours of pre-license education from an approved provider.
3. You must then pass the National Mortgage License System (NMLS) exam with a score of 75 or higher.
4. Once you have obtained your license, you must complete 8 hours of continuing education every year to maintain your license in good standing.

The Steps to Becoming a Mortgage Loan Officer

Becoming a mortgage loan officer is a great way to start a career in the financial industry. If you are detail-oriented and have strong customer service skills, then this job may be perfect for you. In order to become a mortgage loan officer in Texas, there are a few steps you need to follow. This article will outline the steps you need to take in order to become a mortgage loan officer in Texas.

Pre-Licensing Education

Mortgage loan officers must complete pre-licensing education in order to qualify for a license. The education must cover 9 specific topics, last at least 20 hours, and be completed within 1 year of beginning work as a mortgage loan officer. The topics that must be covered are:

1) Federal Truth in Lending Act
2) The Secure and Fair Enforcement for Mortgage Licensing Act of 2008
3) Ethics
4) Non-traditional Mortgage Products
5) Loan Originator Compensation
6) Consumer Protection Laws
7) Undeveloped Land Contracts
8) High Cost Mortgage Loans
9) Mortgage Fraud Awareness

The Mortgage Loan Officer License Exam

The Mortgage Loan Officer (MLO) license exam is administered by the Nationwide Mortgage Licensing System (NMLS). All MLO license applicants must take and pass the NMLS Uniform State Test (UST) prior to being issued a license. The UST is a computer-based exam that covers federal and state-specific laws pertaining to mortgage loan origination.

In order to sit for the UST, applicants must first create an account with the NMLS and submit a completed Mortgage Loan Officer License Application. Prior to taking the UST, applicants must also complete 20 hours of NMLS-approved pre-licensure education.

Once the UST is passed and the Applicant Screening has been completed, applicants will be issued their MLO license.

Continuing Education

In order to originate loans in Texas, loan officers must take 20 hours of approved continuing education courses every year. The education must include:
3 hours of Federal Law
3 hours of Ethics
2 hours of Non-traditional Mortgage Lending
14 hours of Electives OR 7 hours each of Business Development and Mortgage Lending

How to Maintain Your Mortgage Loan Officer License

If you’re licensed as a mortgage loan officer in Texas, you must maintain your license by completing at least 8 hours of NMLS-approved continuing education every year. You must also complete a 4-hour ethics course every 2 years.

Renewing Your Mortgage Loan Officer License

To renew your mortgage loan officer license, you will need to complete six hours of NMLS-approved continuing education each year. You will also need to submit a renewal application to the NMLS, along with the renewal fee.

Mortgage Loan Officer License Reciprocity

In the state of Texas, mortgage loan officers are required to obtain a license through the Texas Department of Savings and Mortgage Lending (SML) in order to work. The good news is that Texas has reciprocity agreements with a number of other states, which means that if you already have a license from another state, you may be able to transfer your license to Texas.

The process for getting your MLO license in Texas is as follows:
1. Complete the SML-approved 20-hour pre-licensing education course
2. Pass the National Mortgage Loan Officer (NMLO) Exam
3. Submit a complete and signed application to the SML
4. Pay the appropriate fees
If you are transferring your MLO license from another state, you will need to submit additional documentation, including evidence that you have met all the requirements for licensure in that state and a copy of your criminal history report from each state in which you have held a mortgage loan originator license during the last five years. For more information on how to become a mortgage loan officer in Texas, please see the SML website.

Conclusion

The steps to becoming a mortgage loan officer in Texas are straightforward and achievable. With the right determination and work ethic, you can obtaining your license and become a mortgage loan officer in Texas.