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

6 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

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