If you’d like to become a loan officer in Texas, there is a clear path to follow to get your Texas MLO license and begin your career in the mortgage industry. The term mortgage loan originator (MLO), licensed mortgage loan officer are frequently used interchangeably and both reflect the important job of helping home buyers find and secure the right home loan for them.
As a successful loan officer you’ll need both a comprehensive understanding of the mortgage industry and financial regulations as well as good interpersonal and communication skills. 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.
Becoming a loan originator is an exciting career path that allows you to help people achieve their dreams of homeownership. As a loan originator you will guide borrowers through the mortgage application process advising them on loan options and helping them get approved for financing.
If you’re interested in starting a lucrative career in the mortgage industry, this comprehensive guide will walk you through every step of getting licensed as a loan originator.
Step 1: Create an NMLS Account
The first step is to create an account on the Nationwide Mortgage Licensing System (NMLS), the official registry for mortgage loan originators. Go to the NMLS website and click on “Create an Account.”
You’ll need to provide personal information like your name, date of birth, and social security number. Once your account is created, you’ll be issued a unique NMLS identification number that you’ll use throughout your licensing process.
Step 2: Complete Pre-Licensing Education
Most states require 20 hours of pre-licensing education to become a loan originator. These courses cover important topics like ethics, lending laws, loan products, and more.
Some states may require a few additional hours focused specifically on their state laws and regulations. Be sure to check your state’s requirements on the NMLS website.
You can take pre-licensing courses online from NMLS-approved providers. OnCourse Learning and Mortgage Educators are two reputable options. Take your time with the coursework so you fully understand everything.
Step 3: Pass the National SAFE Mortgage Loan Originator Test
After completing your education, you’ll need to pass the national SAFE Mortgage Loan Originator Test, which is administered by the NMLS.
This rigorous exam covers your knowledge of mortgage concepts and laws. It has 125 multiple choice questions and you’ll have 190 minutes to complete it.
Be sure to thoroughly study using prep materials and practice exams first. You can schedule the SAFE exam through the NMLS website. The exam fee is $110.
Step 4: Submit License Application on NMLS
Once you’ve passed the SAFE exam, it’s time to submit your license application on the NMLS system. You’ll need to complete the Uniform Mortgage Loan Originator License/Registration & Sponsorship Form (MU4).
As part of this application, you’ll need to authorize a credit report and criminal background check. You’ll also need to submit fingerprints to the NMLS.
Application fees vary by state, ranging from $30 to $500, so be sure to check your state’s requirements.
Step 5: Get Sponsored by a Company
To complete the licensing process, you must get sponsored by a mortgage company, bank, or credit union. This sponsoring employer will submit your license request to the state regulators for approval.
Start networking and applying to mortgage lender and broker jobs that interest you. Consider smaller independent mortgage brokers which may provide more flexibility and income potential.
Step 6: Maintain Your License
Congratulations, you are now a licensed mortgage loan originator!
Your license must be renewed yearly. You’ll need to complete at least 8 hours of NMLS-approved continuing education each year.
States also require loan originators to pay renewal fees and re-authorize background checks periodically. Fail to meet these requirements and you risk losing your license.
Tips for Success as a New Loan Originator
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Build relationships with real estate agents and financial advisors who can refer clients to you.
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Join industry associations like the National Association of Mortgage Brokers to expand your network.
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Develop expertise in niche products like jumbo loans, ARM loans, and renovation loans.
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Ask mentors at your company for advice as you get started in the field.
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Stay up to date on mortgage regulations and interest rate trends.
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Be responsive and provide excellent customer service to stand out.
Becoming a licensed mortgage loan originator requires dedication but opens up a rewarding, lucrative career. Follow each step carefully, from completing your pre-licensing education to passing the SAFE exam and getting sponsored.
Strive to be an ethical, knowledgeable loan originator who provides exceptional guidance. With hard work, you can build a standout career helping people finance their dream homes.
Step 3: Review the Texas mortgage licensing requirements
Check Texas’s state-specific licensing requirements through Texas MLO license requirements on NMLS’s Resource Center. Here, you’ll find the additional steps required to obtain your MLO license in Texas. You will want to complete this step for any additional state you’d like to get licensed in.
Step 4: Complete national and Texas pre-licensing coursework
Complete the required 20 hours of pre-licensing coursework. Pre-licensing classes for becoming a loan officer cover a range of topics from mortgage industry fundamentals and financial regulations to ethics and professional conduct. The Texas Department of Savings and Mortgage Lending also requires 3 additional hours of pre-licensing courses that are dedicated to state-specific laws and regulations.
Morty recommends Oncourse Learning as a pre-licensing coursework provider. If you’d like other recommendations, reach out through our Platform Loan Officer program.
How to Become a Mortgage Loan Officer in 2024! (Step by Step)
FAQ
Is it hard to make money as a mortgage loan originator?
How long does it take to become a loan officer in California?
How do loan originators get clients?
How to be a loan officer in Texas with no experience?
How do I become a mortgage originator?
Register with the Nationwide Mortgage Licensing System and Registry (NMLS). Take 20 hours of prelicensure education courses approved by NMLS. Certain states also require that mortgage loan officers complete state-specific education. Under the SAFE Act, all state-licensed loan originators are required to pass a national exam.
How do I become a mortgage loan officer?
Becoming a **mortgage loan officer (MLO)** can be a rewarding career if you’re interested in real estate and enjoy working with people.Here are the steps you can follow to become an MLO: 1.**Meet the
What is a mortgage loan originator?
A mortgage loan originator (MLO) is a person or institution that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process. An MLO can be a lending company, mortgage broker or loan officer.
How do I get a mortgage loan originator license?
This exam was instituted by Congress as part of the Secure and Fair Enforcement for Mortgage Licensing Act, known as the SAFE Act, of 2008. To obtain your MLO license, you’ll need to pass the NMLS’s SAFE Mortgage Loan Originator Test with a score of 75% or higher. This exam is meant to test your understanding of core concepts in mortgage lending.