Becoming a licensed mortgage loan officer in Texas can be a rewarding career path with great income potential. As a loan officer, you get to help homebuyers achieve their dreams while building your own book of business. If you enjoy working with people, have good communication skills, and want to learn the mortgage lending process, it may be the perfect job for you.
In this comprehensive guide, we will walk through the step-by-step process on how to become a mortgage loan officer in Texas
Overview of Becoming a Loan Officer in Texas
Here is a quick overview of the requirements to become a licensed mortgage loan originator in Texas
- Complete 20 hours of NMLS-approved pre-licensing education courses
- Pass the National SAFE Mortgage Loan Originator Test
- Submit fingerprints for an FBI background check
- Complete the license application on NMLS
- Maintain sponsorship by a licensed mortgage company
- Abide by national and Texas lending laws and regulations
Gaining a solid understanding of mortgage lending guidelines and regulations is crucial to becoming a successful loan officer. Let’s explore each of these steps in more detail.
Step 1: Enroll in NMLS
The first step is to enroll on the Nationwide Multistate Licensing System (NMLS). This is the system that regulates mortgage loan originators in Texas. You will be assigned a unique NMLS identification number that you will use throughout your licensing process and career.
Go to the NMLS website and click on “Create an Individual Account.” Follow the prompts to enter your personal information. There is no fee to create an account.
Step 2: Complete Pre-Licensing Education
Texas requires 20 hours of NMLS-approved pre-licensing education courses to become a licensed loan officer. These courses cover topics such as ethics, federal laws and regulations, nontraditional loans, and more.
Many top education providers offer online courses that allow self-paced learning on your schedule. OnCourse Learning and Mortgage Educators are two reputable providers. Expect to pay $100-300 for pre-licensing education.
Track your completed courses in the NMLS system. You must finish education before being allowed to take the licensing exam.
Step 3: Pass the SAFE Mortgage Loan Originator Test
The SAFE Mortgage Loan Originator Test is a national licensing exam administered by the NMLS. It consists of 125 multiple choice questions and you must score at least 75% to pass.
You can schedule the exam after completing pre-licensing education. The exam fee is $110 and testing centers are located throughout Texas.
Be sure to thoroughly study NMLS exam prep materials before taking the test. Some education providers also offer exam prep packages. Many loan officers recommend taking practice tests to get comfortable with the format.
Step 4: Submit Fingerprints for Background Check
All mortgage loan originator license applicants in Texas must submit fingerprints to allow the NMLS to perform state and federal criminal background checks.
Follow the instructions in your NMLS account to schedule an appointment. The process can be completed electronically in most cases. The fee is approximately $36.25.
If you have a criminal history, be prepared to provide court documents to the regulators. Having a criminal record does not automatically disqualify you from licensure.
Step 5: Complete the TX License Application
Once you have completed education, passed the SAFE exam, and cleared the background check, it is time to officially apply for your mortgage loan originator license through the NMLS.
You will need to provide information such as your employment history, financial background, and personal identifiers. The application fee is $270 for new applicants.
Expect it to take at least 45 days for Texas regulators to process and approve new license applications. You can check your status on the NMLS dashboard.
Step 6: Maintain Active License and Sponsorship
Your Texas loan officer license must remain sponsored by a licensed mortgage lender, bank, or credit union. If you change employers, an updated sponsorship request must be submitted through NMLS.
To keep your license active, you will also need to complete at least 8 hours of NMLS-approved continuing education each year. This includes 3 hours of federal law, 2 hours of ethics, and 2 hours of non-traditional lending. The 1 remaining elective hour can be Texas-specific content.
Always abide by ethical business practices and keep your knowledge of lending laws and regulations up-to-date. Remember, your license depends on it!
Finding a Job as a Loan Officer in Texas
Once licensed, you will need to find a job with a mortgage lender or broker to originate loans. Look for openings at banks, credit unions, and mortgage companies. Many larger lenders recruit at career fairs and networking events.
You can also search online job boards like Indeed, ZipRecruiter, and LendingHome. LinkedIn is a great resource for connecting with recruiters. Make sure your profile highlights your sales skills and desire to help homebuyers.
Some loan officers start their careers as assistants before getting fully licensed. This allows you to learn while earning an income. After a year or two, you will be ready to start origination.
How Much Do Loan Officers Make in Texas?
Loan officer salaries in Texas can vary greatly depending on your experience level and employer, but the earning potential is high.
According to the Bureau of Labor Statistics, the average loan officer salary in Texas is $76,070 per year. However, it’s common for experienced loan officers to make $100,000-150,000+ in Texas.
Many loan officers also earn commission based on loan volume and total sales. Commission structures range from 25-200 basis points per funded loan. So on a $300,000 mortgage, you could make $750-6000 extra!
The more you grow your personal lending business, the higher your income potential as a loan officer in Texas.
Joining Morty’s Loan Officer Platform
Morty is a top direct mortgage lender and loan officer career platform operating in Texas. We empower loan officers through industry-leading technology, competitive pricing, and operational support.
Our loan officers benefit from:
- Access to our expansive lender network
- Seamless digital mortgage experience
- Dedicated processing and underwriting
- Marketing tools and branding support
- Flexible income potential and structures
If you are looking to take your loan officer career to new heights, Morty is here to help! Learn more about joining our team and let us help you better serve more Texas homebuyers.
Get Licensed and Start Your Loan Officer Career
Becoming a mortgage loan officer in Texas provides the opportunity to have a real impact on people’s lives. By guiding homebuyers through the lending process, you get to share in the joy of their journey towards homeownership.
Now that you understand the step-by-step process for how to become a loan officer in Texas, it’s time to get started! Enroll in NMLS, complete your pre-licensing courses, and pass the SAFE exam. Once licensed, you will be ready to start your rewarding mortgage career.
With hard work and persistence, you can build a thriving business as a loan officer. Texas offers great earning potential in the mortgage industry. Follow your passion, develop your skills, and make a difference in your clients’ lives.
What Else Is There to Know About Becoming a Mortgage Loan Officer in Texas?
The Texas Office of Consumer Credit Commissioner defines a Mortgage Loan Officer as:
An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.
Complete the NMLS Application
Now it’s time to submit for official Texas licensure through NMLS. Applicants will apply through the NMLS licensing portal. Applicants are advised to review the appropriate MLO New Application checklist below in order to ensure they’re ready to apply.
There is a corresponding license and application fee for each type of license. Those pursuing a Texas-OCCC MLO License will owe $325, and those pursuing a Texas-SML MLO License will owe $45.
Note: You only have to pay one of the two license fees, depending on the type of license you pursue.
Becoming an MLO in Texas – Getting a Mortgage Loan Originator License
FAQ
How long does it take to get a loan officer license in Texas?
Is it hard to get hired as a loan officer?
How much does a mortgage loan officer make in Texas?
How do I become a mortgage loan officer in Texas?
To be a mortgage loan officer in Texas, you will need to complete six steps. Some of these steps include enrolment in Texas Pre-Licensure Education (PE) and licenses from the Texas Department of Savings and Mortgage Lending (Texas-SML) and the Texas Office of Consumer Credit Commissioner (Texas-OCCC).
How long does it take to become a loan officer in Texas?
The time it takes to become a loan officer in Texas will depend on what kind of schedule works best for you and how quickly it takes you to complete the licensing requirements. Usually, it will take 45 days to complete the requirements to become a licensed mortgage loan officer, whether in Texas or any other state.
What does a mortgage loan officer do in Texas?
The Texas Office of Consumer Credit Commissioner defines a Mortgage Loan Officer as: An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. How much do Texas Mortgage Loan Officers make?
How do I get a mortgage loan originator license in Texas?
To get your mortgage loan originator license you will first learn the national and Texas state-level lending guidelines and then pass an exam to show your mortgage knowledge. Let’s dive into our step-by-step guide of how to become a TX loan officer. You can also check out our video tutorial on how to become an LO in Texas.