Being a mortgage loan originator is one of your potential job alternatives if you want to go into the real estate sector (MLO). Many people are interested in this profession since it can be flexible and financially lucrative.

But you need to have a license first in Texas before you can offer mortgages. Here is a starter manual to help you.

Here are Texas’s MLO Requirements to Get the License Easily

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To receive your state-issued MLO license, adhere to the steps in this step-by-step instruction.

1. Create an NMLS User Account

“Nationwide Multistate Licensing System” is what NMLS stands for. It serves as the official method for both people and corporations to keep track of licenses for mortgages and other non-bank financial transactions. Create your NMLS account by logging in to the website, where a special identification number will be given to you.

2. Pre-License Courses to Take

The majority of pre-licensing courses last the requisite 20 hours of instruction that MLOs are required to complete. Mortgage rules and procedures are covered in the general curriculum under the SAFE Act, however, some states demand additional hours to address specific policies.

TX-OCCC and TX-SML are the two licensing organizations in Texas. A three-hour elective on Texas is necessary for a license from the latter.

3. Pass the License Exam

Log into your NMLS account and, after paying the $110 cost, schedule your test at the closest site. The test consists of 115 questions, which participants must finish in 190 minutes while answering 75% of them correctly. You have 30 days to retake the test if you don’t pass it. By preparing diligently prior to the test, retakes can be minimized.

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4. Complete Mandatory Background Checks

Even if you pass the exam, you are not immediately recognized as a licensed MLO. You must authorize a criminal history check and specify the time that your fingerprints will be scanned on the NMLS website. Additionally, you must submit a credit history report; while a bad credit score won’t prevent you from obtaining a license, it can have an impact on your job application.

5. Apply for a Mortgage License in Texas

Apply for a Texas mortgage license using your NMLS account after passing the exam. Depending on the license type you’re looking for, there are different fees; the TX-OCCC costs $225, while the TX-SML costs $90. To become certified, you simply need to pay one of the license costs.

Remember that unless your MLO license is linked to and verified by an employer, it is still inactive. You must enter into your NMLS, go to Company Access under Form Filing, and add the company name if you are employed or have a job lined up. After receiving your employer’s permission, you will then receive your formal license.

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What Comes After Obtaining a License?

Once you have successfully received your Texas mortgage license, you will need to renew it annually. You must complete a minimum of 8 hours of continuing education each year in addition to paying the renewal cost. Remember that coursework must be finished before submitting documentation through the NMLS website.

You must finish the criteria before December 31st because MLO licenses expire on this day; otherwise, your employer will have to request reactivation and pay the processing charge.

Having a fulfilling, well-paying profession as a mortgage loan officer is well worth the effort, despite the challenges of getting an MLO license. Many people will benefit from your assistance in finding a house. Additionally, you will receive a commission of 1% to 2% of the purchase price for each mortgage loan that is granted.

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