Step-by-Step Guide to Becoming a Loan Officer in Texas

To become a loan officer in Texas, you'll need to meet the state's licensing requirements.

You must be at least 18 years old and have a high school diploma or equivalent.

To qualify for a loan originator license, you'll need to complete a 20-hour pre-licensing education course approved by the Texas Department of Savings and Mortgage Lending.

This course covers topics such as mortgage laws, regulations, and ethics.

To become a loan officer in Texas, you'll need to meet the licensing requirements set by the state. You must obtain a license from the Office of Consumer Credit Commissioner (OCCC) if you originate specific types of loans, including secondary mortgage loans, home-equity loans, residential property tax loans, and manufactured housing loans.

The OCCC is responsible for issuing licenses for these types of loans, except for secondary mortgage loans and home-equity loans, which require a license from the Texas Department of Savings & Mortgage Lending (TX-SML) if you already hold a license from them. You can apply for a license through the National Mortgage Licensing System (NMLS).

Entities that must obtain a Residential Mortgage Loan Originator (RMLO) license include Chapter 342 Regulated Lenders, Chapter 347 Manufactured Housing Creditors, Chapter 348 Motor Vehicle Dealers, and Chapter 351 Property Tax Lenders.

To get licensed, you'll need to pass the SAFE mortgage loan officer test, which has 115 scored questions and requires a 75% correct answer rate. You can schedule the test on the NMLS website and it costs $110 to take. The test must be completed within three hours and 10 minutes.

Here are the steps to get licensed as a loan officer in Texas:

After passing the SAFE exam, you'll need to submit your license application through the NMLS website and complete the Individual Form (MU4).

To become a loan officer in Texas, you'll need to complete national and pre-licensing coursework. This typically involves 20 hours of pre-licensing coursework, which covers mortgage industry fundamentals, financial regulations, ethics, and professional conduct.

You'll also need to complete an additional 3 hours of pre-licensing courses that focus on state-specific laws and regulations in Texas. This is a requirement for both the Texas-OCCC and Texas-SML licenses.

Mortgage industry fundamentals are a crucial part of your education as a loan officer in Texas. You'll learn about financial regulations, ethics, and professional conduct in your pre-licensing coursework.

You can choose from various providers for your pre-licensing coursework, such as Oncourse Learning, which is recommended by Morty.

To become a loan officer in Texas, you'll need to pass the SAFE Mortgage Loan Originator Test. The test is 190 minutes long and costs $110. Schedule your test when you feel ready.

You'll need to answer at least 75% of the 115 scored questions correctly to pass. The test is timed, and you have three hours and 10 minutes to finish.

To prepare for the national mortgage SAFE Test, you'll need to purchase test prep materials and practice tests after completing your pre-licensing coursework. This exam was instituted by Congress as part of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) of 2008.

The SAFE Test is a crucial step in becoming a loan officer, and it's essential to study diligently to pass it. You'll want to focus on the topics covered in your pre-licensing coursework, including mortgage industry fundamentals and financial regulations.

In Texas, you'll need to complete an additional 3 hours of pre-licensing courses that are dedicated to state-specific laws and regulations. This will give you a solid understanding of the laws and regulations that govern the mortgage industry in Texas.

The SAFE test is a crucial step in becoming a licensed mortgage loan originator. It's a 190-minute exam that costs $110 to take.

To prepare for the test, purchase your SAFE test prep materials and practice tests. This will help you feel more confident and ready to take the exam.

The test has 115 scored questions, and you must answer at least 75% correctly to pass. This means you'll need to get at least 86 questions right out of 115.

You can schedule your SAFE test on the NMLS website using your existing account number. Make sure you're ready before you schedule your test, as you'll be given three hours and 10 minutes to finish.

If you don't pass the test, don't worry! You can wait 30 days and take it again. Just be sure to study and review the material before trying again.

You'll need to complete a background check as part of the loan officer application process in Texas. This involves authorizing an FBI background check through your NMLS account.

The cost of the background check is $36.25, which includes both the FBI and state background checks. You'll also need to schedule an appointment to submit your fingerprints, which can be arranged through the NMLS portal.

Certain crimes can prevent you from becoming a loan officer in Texas, so it's essential to check your eligibility before investing time and money into the application process. Those with a felony in the last seven years or related to fraud can never become a loan officer in any state.

You can initiate the background check through your NMLS portal, and it's a good idea to do so as soon as possible to avoid any delays in your application.

To apply for your Texas mortgage loan officer license, you'll need to register with the Nationwide Mortgage Licensing System & Registry (NMLS). The process starts with requesting an account on the NMLS website, where you'll receive a personal NMLS number.

The NMLS is a nationwide database where all mortgage loan officers in Texas must register. You'll need to create a Nationwide Multistate Licensing System and Registry (NMLS) account on the State Mortgage Registry website to get started. After creating your account, you'll receive a personal NMLS number you'll have for the entire time you're a working mortgage loan officer.

The cost to file your mortgage loan officer license in Texas is $30 NMLS application fee, $195 state application fee, and a $15 credit report fee.

To request your account, visit the NMLS Resource Center and click on the "Log in to NMLS" button. You'll then need to click on "Request an Account" and choose the "Individual" option.

You'll need to enter all required information and ensure it's correct. This will be your individual NMLS ID number, which you'll use throughout your career as a licensed loan officer.

You can also start by visiting the NMLS to request an account, as mentioned in Example 4. If you already have an NMLS account, you can skip to Step #3.

Before you start the educational portion of licensing, you must create a Nationwide Multistate Licensing System and Registry (NMLS) account on the State Mortgage Registry website, as stated in Example 5. After creating your account, you'll receive a personal NMLS number that you'll have for the entire time you're a working mortgage loan officer.

Here are the steps to request your account in more detail:

This will get you started on the path to becoming a licensed loan officer in Texas.

To authorize a credit report, you'll need to submit a request via your NMLS account. This is a crucial step in the application and registration process.

You'll only need to complete the identity verification process if this is your first time requesting a credit report.

To become a loan officer in Texas, you'll need to meet the educational standards, which require taking 23 hours of classes. This includes 20 hours of national educational requirement and 3 hours of Texas-specific laws.

You'll need to complete NMLS-approved pre-licensure education, which varies depending on whether you're getting a Texas-OCCC or Texas-SML license. For Texas-OCCC, you need 20 hours, while for Texas-SML, you need 23 hours.

You'll also need to take ongoing training to stay updated on the latest laws in the lending industry. This requires 8 hours of training each year to maintain your Texas loan officer license.

To become a licensed loan officer in Texas, you must complete NMLS-approved pre-licensure education. You'll need to finish 23 hours of pre-licensure education to get your Texas-SML license, or 20 hours for your Texas-OCCC license.

The pre-licensure coursework covers a range of topics, including mortgage industry fundamentals, financial regulations, ethics, and professional conduct. This education prepares you for the exam and gets you ready for the situations you'll face once you begin your career.

In addition to the national educational requirement, you'll also need to take 3 hours of Texas-specific education to get your Texas-SML license. This ensures you're knowledgeable about the laws and regulations specific to Texas.

You must complete the required 20 hours of pre-licensing coursework, which includes 3 additional hours of pre-licensing courses dedicated to state-specific laws and regulations. This is a one-time requirement, but it's essential to your success as a licensed loan officer.

Mortgage companies often recommend pre-licensing coursework providers like Oncourse Learning to help you meet this requirement.

Commissions play a significant role in determining a loan officer's earnings. Typically, commissions are calculated according to Basis Points, or BPS, per loan. In Texas, mortgage loan officers can earn a commission of $20,400, as reported by Indeed.com. Commissions can vary depending on where the loan officer works. Some loan officers make a flat salary, while others receive a salary plus commission.