Texas Loan Officer Standards & Requirements

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) established requirements for the licensing and registration of all Mortgage Loan Originators (MLOs.) Below you will find the profession requirements needed to become a state-licensed mortgage loan officer, please use the links for additional information on subject matter:

Criminal Background Check – Fingerprints will need to be submitted through NMLS for an FBI criminal background check.

Education – Please see Texas education requirements below.

Testing – Required to pass National and State components of the SAFE MLO Test.

Credit Report – Applicants will have a credit report run through NMLS.

 

Texas Pre-Licensure Education Requirements (OCCC)

Texas requires all new state-licensed MLOs to complete 20 hours of NMLS approved education. Below shows a breakdown of hours needed for each section:

  • 3 hours of Federal law and regulations
  • 3 hours of ethics, which entails, instruction on fraud, consumer protection, and fair lending issues
  • 2 hours of non-traditional mortgage lending
  • 12 hours of undefined instruction (electives)

Texas (OCCC) does not require state-specific law to be taught but MLOs will be tested on Texas mortgage lending law. If you would like to get started with your mandatory education requirements please refer to our NMLS approved course.

ENROLL IN COURSE

Texas NMLS Continuing Education Requirements

All active state-licensed MLOs are required to complete at least 8 hours of NMLS approved education yearly.  Below is a break down of sections that must be covered in continuing education:

  • 3 hours of Federal law and regulations
  • 2 hours of ethics, which entails, instruction on fraud, consumer protection, and fair lending issues
  • 2 hours of non-traditional mortgage lending
  • 1 hour of undefined instruction (elective)

Please note that MLOs are not able to take the same NMLS approved courses two years in a row, as the NMLS will not count that toward their continuing education requirements. Known as the SAFE Act’s “successive years” rule. Our NMLS approved continuing education makes sure every year we provide you a new course so you never run into this problem.

 

Texas Pre-Licensure Education Requirements (SML)

Texas requires all new state-licensed MLOs to complete 23 hours of NMLS approved education. Below shows a breakdown of hours needed for each section:

  • 3 hours of Federal law and regulations
  • 3 hours of ethics, which entails, instruction on fraud, consumer protection, and fair lending issues
  • 2 hours of non-traditional mortgage lending
  • 12 hours of undefined instruction (electives)
  • 3 hours of Texas specific education

Texas (SML) requires 3 hours of instruction on state-specific law; either taking a TX comprehensive course or a state-specific elective course will satisfy this, new MLOs will also be tested on Texas mortgage-lending law. To get started with your mandatory education requirements please refer to our NMLS approved course.

ENROLL IN COURSE


Texas NMLS Continuing Education Requirements

All active state-licensed MLOs are required to complete at least 8 hours of NMLS approved education yearly.  Below is a break down of sections that must be covered in continuing education:

  • 3 hours of Federal law and regulations
  • 2 hours of ethics, which entails, instruction on fraud, consumer protection, and fair lending issues
  • 2 hours of non-traditional mortgage lending
  • 1 hour of undefined instruction (elective)

Please note that MLOs are not able to take the same NMLS approved courses two years in a row, as the NMLS will not count that toward their continuing education requirements. Known as the SAFE Act’s “successive years” rule. Our NMLS approved continuing education makes sure every year we provide you a new course so you never run into this problem.

 

Texas Loan Officer Requirements
    • While you don’t need a high school diploma to acquire your MLO, keep in mind it might be hard to find a job as a mortgage loan officer without one.

  • I have my diploma only. My mom says to just get my license. But should I at least get a certificate or real estate associates degree? She thinks if i get my license I’ll be able to find a job. Wouldn’t it look better on resume or will I be ok with just the license? I’m in Texas btw.

    • As long as you are at least 18 years of age you are able to apply for an MLO license. Many recently licensed MLOs have no experience in the field and find jobs but if you do have a degree it could help you be more competitive in the market.

    • They are actually the same thing. When you acquire your license the official title is Mortgage Loan Originator (MLO) but it is often referred to as loan officer license, loan originator license, etc.

  • I have a discharged bankruptcy from 2014, but now I have a few slow payments on my credit report. Will that stop me from getting my nmls license?

    • Unfortunately we don’t know the answer to that question since each State has different requirements, we recommend you reach out to the State licensing department for the State you wish to get licensed in.

  • So I’m coming from a different background. I had a bachelor degree in nutrition and after working in the hospital after college I realized it wasn’t my thing so I’m currently working at a bank as an entry level personal banker but I wanna be a loan office in the future. So what should I do? Just get this license? Where do I take classes at?
    Thank you.

  • I currently work for a Bank in Texas as a MLO. If I decide to venture out, and work for strictly a mortgage lender/broker, will I have to obtain any licenses? Right now I only have my NMLS. will I have to get any licenses?

    • If you currently work for a commercial bank loan officers only need to be registered with the NMLS but if you plan to work for a lender/broker you will need to be fully licensed.

  • Can you get the MLO license and work with potential borrowers independently, for your own investment properties? Or, do you have to be employed by a broker or lender to obtain or keep the license?

  • Can you get your license say in texas, so you can work remotely doing loans in that state, from another state?
    Thank-you

  • I was a Texas Mortgage Broker for 25 years. I retired, but would like to return to originating loans and/or processing. Did I understand correctly that I would take 20 hours, pre-licensing courses, then take the test, then take 23 hours of post-licensing courses to be fully licensed?
    Does the experience substitute for any of the courses?
    Thanks!

    • You are correct except for post-licensing education. You will only need to complete continuing education, which is usually 8 hours a year (depends on State).

  • I am 52 years old and I am in sales at this time but want to become a Loan Officer. Is my age going to be a disadvantage to me in getting a job in this field?

  • I am currently a high school math teacher with a master degree in mathematics. What route would I take to become a mortgage loan officer or just a loan officer?

    • If you’re looking to get licensed in Texas just follow the steps on this page and you will be licensed in no time! If you are looking for another State select your State from loanofficerlicense.net

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