Do you want to work in the mortgage industry in Texas? First, you should learn how to become a licensed mortgage professional and which licenses you’ll need. This can help you launch a successful career that complies with the law.

To assist you, we’ve covered the various mortgage careers available, as well as a full list of the licensing requirements for each.

What Are The Mortgage Career Paths You Can Take?

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What licensing is required for mortgage lenders in Texas? The answer depends on what career path you choose. You can select from several mortgage careers, depending on where you want to specialize or what suits your interests. Before diving into the required mortgage licenses in Texas, let’s take a look at your career options and the roles they play in the industry:

  • Mortgage Loan Originator (MLO): They guide potential borrowers throughout the loan application process, from application to approval. MLOs are licensed by national and state authorities and typically work on behalf of a company or a financial institution.
  • Mortgage Broker: They act as an intermediary between lenders and potential borrowers, researching loan options and negotiating with lenders on behalf of clients.
  • Mortgage Underwriter: Also called credit analysts, underwriters verify the borrower’s financial condition to determine if they qualify for a loan. They review the client’s income, assets, debt, and credit scores.
  • Mortgage Lender: Lenders refer to banks, credit unions, and other financial institutions that offer and underwrite home loans. They set the guidelines for loan approval, terms, payment schedules, and mortgage rates.

List Of Required Mortgage Licenses In Texas

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Mortgage professionals must be licensed by the state where they practice business. This entails completing prelicensing education requirements and passing state and national NMLS exams, alongside any additional hours of educational courses required.

So, what licensing is required for mortgage lenders in Texas? Let’s find out below.

  • NMLS SAFE Mortgage License Training: To be a professional Texas-licensed MLO, you’ll need to comply with a 20-hour NMLS SAFE prelicensing course, including any additional courses required by Texas state licensing agencies. The SAFE prelicensing course is considered the minimum licensing standard for licensing and registering aspiring mortgage loan originators.
  • MLO License: This license is necessary for individuals who will pursue the career path of mortgage loan originator, taking residential mortgage loan applications, or negotiating the terms of a mortgage loan on behalf of a borrower or lender.

In Texas, two agencies offer MLO licenses: the Texas Office of Consumer Credit Commissioner (TX-OCCC) and the Texas Department of Savings and Mortgage Lending (TX-SML). If you’re unsure which to pick, look into which agency your future or current employer is part of. Here’s an overview of the differences between each license.

  • TX-OCCC: This license focuses on home-equity loans, residential property tax loans, manufactured housing loans, and secondary mortgage loans. As it serves non-primary mortgage loans, it doesn’t require additional state-specific pre-education course material.
  • TX-SML: A TX-SML MLO license requires 23 total pre-license education hours, including three-hour state-specific course material. It mainly focuses on primary residential mortgage loans and has more prerequisites than a TX-OCCC license.

mortgage broker

MLO students must comply with at least 20 hours of pre-license education (23 hours for TX-SML) before they can schedule an NMLS licensing exam. After completing the required prelicensing courses and passing the exam, you can apply for your MLO license on the NMLS website.

  • Mortgage Broker License: If you plan to start a brokering business in Texas, you must get a mortgage broker license. This license is also regulated by the Texas Office of the Consumer Credit Commissioner and the Department of Savings and Mortgage Lending. These two licensing bodies have different prerequisites for the license.

For example, getting licensed with the Texas Department of Savings and Mortgage Lending requires you to post a $50,000 bond or maintain net assets of at least $25,000. This is an additional guarantee of your legal compliance as a licensed mortgage broker.

Are You Ready To Take The Next Step?

The mortgage industry is fertile ground for individuals seeking a new, lucrative, and impactful career. Now that you know the different career paths you can take and what licensing is required for mortgage lenders in Texas, you can begin your journey and pave your way to success!

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