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.

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.

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

18 thoughts on “Texas Loan Officer Requirements

  • April 7, 2017 at 4:36 PM
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    Do you have to have a high school diploma?

    Reply
    • April 10, 2017 at 9:17 AM
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      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.

      Reply
  • June 7, 2017 at 6:39 PM
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    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.

    Reply
    • July 27, 2017 at 3:50 PM
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      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.

      Reply
  • August 14, 2017 at 1:17 PM
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    Can we study the materials by ourselves in stead of taking the course as long as we pass the exam?
    Thanks!

    Reply
    • August 14, 2017 at 1:32 PM
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      Unfortunately you need to take a mandatory NMLS approved course like ours as well as pass the test.

      Reply
  • September 12, 2017 at 9:49 AM
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    What is the difference between a Loan Officers license and a Loan originators License ?

    Reply
    • September 16, 2017 at 3:05 AM
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      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.

      Reply
  • September 21, 2017 at 9:39 PM
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    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?

    Reply
    • September 22, 2017 at 9:30 AM
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      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.

      Reply
  • January 24, 2018 at 10:50 AM
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    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.

    Reply
    • February 12, 2018 at 2:42 PM
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      Your best bet would be to become a loan officer. We provide online classes and they can be found by selecting the State you wish to get licensed in from the map on this page https://www.loanofficerlicense.net

      Reply
  • February 9, 2018 at 12:50 PM
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    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?

    Reply
    • February 12, 2018 at 2:35 PM
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      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.

      Reply
  • July 2, 2018 at 6:32 AM
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    Is it legal to become a mortgage professional and a real estate agent in Texas?

    Reply
    • July 11, 2018 at 6:56 PM
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      It is legal to be both but is frowned upon.

      Reply
  • September 16, 2018 at 12:51 PM
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    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?

    Reply
    • September 17, 2018 at 9:03 PM
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      Yes you can but you will need to become a loan broker.

      Reply

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