How to Become a Loan Officer in Texas: A Step-by-Step Guide

Becoming a mortgage loan officer in Texas can be an extremely rewarding career path, Loan officers play a vital role in helping homebuyers achieve the dream of homeownership They get to guide buyers through one of life’s biggest financial decisions – taking out a mortgage

In Texas, loan officers earn an average salary of around $197,452 per year. With commissions, first year loan officers in Texas can make over $150,000. The earning potential in this career is immense.

But how exactly does one become a loan officer in the Lone Star State? What are the requirements and steps to get licensed? This comprehensive guide will walk you through the entire process, from start to finish.

Step 1: Create an Account on the NMLS

The first step to becoming a licensed mortgage loan officer in any state is to create an account on the Nationwide Multistate Licensing System (NMLS). This is the system that regulates loan officers across the country.

Go to the NMLS website and click on “Create an Account” You’ll need to provide some basic personal information to register

Once your account is created, you’ll be issued a unique NMLS identification number. This ID number will stay with you throughout your career as a loan officer.

Step 2: Complete Pre-Licensing Education

Texas requires loan officer candidates to complete 20 hours of pre-licensing education. These courses cover topics like ethics, federal and state lending laws, and mortgage product knowledge.

You can take pre-licensing courses through any NMLS-approved education provider. OnCourse Learning and Mortgage Educators are two reputable options.

The Texas Department of Savings and Mortgage Lending also requires an additional 3 hours of Texas-specific curriculum.

In total, you’ll need 23 hours of pre-licensing education to satisfy the requirements in Texas. The courses can be taken online at your own pace.

Step 3: Pass the SAFE Mortgage Loan Originator Exam

After completing your education, the next step is to pass the SAFE Mortgage Loan Originator exam. This test is administered by the NMLS.

The exam contains 125 multiple choice questions covering topics like ethics, federal laws, mortgage products, and state-specific laws. You’ll have 300 minutes to complete the test.

To pass, you’ll need to correctly answer at least 75% of the questions. The exam costs $110 payable to the NMLS when you register.

You can schedule the test date and time that works best for you at a local test center. If you fail your first attempt, you must wait at least 30 days before re-taking the exam.

Step 4: Submit Fingerprints for a Background Check

All loan officer candidates must undergo a criminal background check. This involves getting fingerprinted and authorizing an FBI background check through the NMLS system.

Visit the NMLS website and click on “Create Criminal Background Check” under the Filing tab. Follow the prompts to schedule a fingerprinting appointment at an authorized location.

You’ll also need to complete a Texas DPS fingerprint background check. There are over 200 fingerprint sites across the state of Texas to choose from.

The total cost for the background check and fingerprints is around $40.

Step 5: Submit the MU4 Application on NMLS

With education, testing, and background checks complete, now it’s time to officially apply for your loan officer license through the NMLS.

This is done by submitting what’s called the MU4 form. You’ll provide information about your employment history, background, and more.

The application fee for Texas is $195 payable to the NMLS. There is also a $30 NMLS processing fee and $15 credit report fee.

Make sure to carefully review Texas’ application checklist to include all required documents. You can upload supporting docs like pre-licensing certificates directly to the NMLS.

Once submitted, your application will go under review by regulators.

Step 6: Find a Sponsoring Employer

The final requirement is to find a sponsoring mortgage company. This sponsoring employer essentially endorses you and provides oversight of your loan origination activities.

Many prospective loan officers obtain a job offer from a bank, mortgage lender, or brokerage prior to getting licensed. That employer then acts as their sponsor.

If you don’t have a sponsoring employer yet, don’t worry. Just make sure to line one up before submitting your license application.

Popular mortgage companies like Morty, loanDepot, and Better make it easy by hiring new loan officers prior to licensure.

Step 7: Maintain Your License

Once approved, congratulations – you’re officially a licensed mortgage loan originator in Texas!

To maintain your license, there are a few key requirements:

• Complete at least 8 hours of NMLS-approved continuing education each year
• Pay renewal fees to the NMLS
• Maintain sponsorship by an approved financial company
• Avoid any actions that could cause your license to be revoked

As long as you remain in good standing, your loan officer license does not expire. You must renew it annually.

The job outlook for loan officers in Texas is very promising. The Bureau of Labor Statistics projects 14% growth in mortgage loan officer positions in Texas through 2030.

By following this guide, you can join this growing career field and start helping Texans become homeowners. The income potential is immense for talented, hardworking loan officers.

So what are you waiting for? If you’re interested in becoming a loan officer in the Lone Star State, now you know the steps to get your career up and running.