What Sort of Licensing Do Texas Mortgage Lenders Need

Do you wish to work in Texas’ mortgage sector? Learn first about the requirements for becoming a licensed mortgage professional and the licenses you’ll require. This can assist you in beginning a lucrative job that abides by the law.

We’ve discussed the many mortgage occupations that are available as well as a comprehensive list of the licensing requirements for each to help you.

What Career Paths Are Available in Mortgage?

What kind of licenses are needed in Texas for mortgage lenders? Depending on your job path, the answer may vary. Depending on your hobbies or where you wish to focus, you can choose from a variety of mortgage careers. Let’s look at your career alternatives and the roles they play in the industry before getting into the Texas mortgage license requirements:

  • Mortgage Loan Originator (MLO): They assist prospective borrowers in every step of the loan application procedure, from the initial loan request to loan approval. MLOs are often employed by businesses or financial institutions and hold a national and state license.
  • Mortgage Broker: They serve as a liaison between potential borrowers and lenders, doing loan options research and negotiating with lenders on their clients’ behalf.
  • Mortgage Underwriter: Underwriters, also known as credit analysts, examine a borrower’s financial standing to determine whether they are eligible for a loan. They examine the client’s income, possessions, liabilities, and credit ratings. They examine the client’s income, possessions, liabilities, and credit ratings.
  • Mortgage Lender: Banks, credit unions, and other types of financial entities that provide and oversee mortgage lending are referred to as lenders. They establish the standards for loan eligibility, terms, repayment plans, and interest rates.

Texas Mortgage License Requirements List

The state where a mortgage professional conducts business must issue them a license. This comprises finishing the prelicensing educational requirements, passing the national and state NMLS tests, and taking any extra educational course hours necessary.

What sort of licenses are needed for mortgage lenders in Texas, then? Check it out below.

  • NMLS SAFE Mortgage License Training: You must complete a 20-hour NMLS SAFE prelicensing course in addition to any extra coursework mandated by Texas state licensing organizations in order to become a qualified MLO with a license to practice in Texas. The SAFE prelicensing course is regarded as the minimal need for prospective mortgage loan originators who want to be registered and licensed.
  • MLO License: Anyone planning to work as a mortgage loan originator, accept applications for residential mortgage loans, or negotiate the conditions of a mortgage loan on behalf of a borrower or lender must have this license.

The Texas Office of Consumer Credit Commissioner (TX-OCCC) and the Texas Department of Savings and Mortgage Lending are the two organizations in Texas that grant MLO licenses (TX-SML). If you’re not sure which to choose, research the agency that your prospective or present company is a part of. Here is a summary of the variations between each license.

  • TX-OCCC: This license focuses on manufactured housing loans, second mortgage loans, home equity loans, and residential property tax loans. It doesn’t call for additional pre-education course content tailored to any particular state because it handles non-primary mortgage loans.
  • TX-SML: A total of 23 pre-licensing education hours, including three hours of state-specific course material, are needed to obtain a TX-SML MLO license. It has additional requirements than a TX-OCCC license and particularly focuses on primary residential mortgage loans.

Before scheduling an NMLS licensing exam, MLO students must complete at least 20 hours of pre-license study (23 hours for TX-SML). You can submit an application for your MLO license on the NMLS website if you have finished the necessary prelicensing courses and passed the exam.

  • Mortgage Broker License: You need a mortgage broker license in Texas if you want to start a brokerage. The Texas Office of the Consumer Credit Commissioner and the Department of Savings and Mortgage Lending are other regulatory bodies that oversee this license. Different requirements for the license are set forth by these two licensing authorities.

For illustration, the Texas Department of Savings and Mortgage Lending mandates that you post a $50,000 bond or keep net assets of at least $25,000 in order to obtain a license. This is an additional assurance of your compliance with the law as an authorized mortgage broker.

Are You Prepared to Move Forward?

The mortgage sector is a haven for people looking for a fresh, rewarding, and influential job. You may start your journey and lay the foundation for success now that you are aware of the various career options you can choose from and the license requirements in Texas for mortgage lenders.