Before we dive into the details of how to get an MLO license in Texas, let us check out the functions of a mortgage loan originator (MLO), commonly called a mortgage loan officer.
An MLO is typically employed in a financial institution and helps borrowers through the process of obtaining a mortgage loan. They are therefore the bridge between potential homeowners and lenders of mortgage loans.
However, MLOs are not the sanctioning authority for mortgage loans. Their main work is collecting all financial information from borrowers, assessing the application, negotiating rates, processing all the data and figures, and submitting the application to lenders. The underwriting department then evaluates the risk level of the borrowers based on what an MLO has put forward.
To practice as an MLO, it is essential to first get a license. So, let us now see how to get an MLO license in Texas.
Click here to learn about the process of getting an MLO license in Texas.
Steps To Get A Mortgage Loan Originator License In Texas
# Create your NMLS account
Ensure that you are 18 years and above in age before starting your journey of getting an MLO license in Texas. The first step is to open an account with the Nationwide Mortgage Licensing System (NMLS) on their website and obtain an ID that will be valid throughout your career.
# Complete the pre-licensing coursework
There are two parts to the MLO pre-licensing coursework, the national and the state-specific ones and you must complete both. The national section covers 20 hours of coursework while it is 3 hours for the state-level course. Among the topics covered are fundamentals of the mortgage industry, professional conduct, financial rules and regulations, and more.
The course provider must be on the NMLS-approved list. You can study online or in a classroom setting. Among the leading providers of online MLO pre-licensing courses to get an MLO license in Texas is RealEstateU.
# Schedule your SAFE test and pass the exam
You must appear for and pass the Secure and Fair Enforcement (SAFE) exam to get an MLO license in Texas. Visit the website of NMLS and schedule the test by paying $110 as fee. The SAFE exam is held over 190 minutes and you must score at least 75% to get a pass grade.
# Submit your fingerprints for verification
It is essential not to have any past criminal records or history of a felony to get an MLO license in Texas. Verification of fingerprints is the way NMLS confirms it.
# Apply for an MLO license in Texas
Apply on the NMLS website for an MLO license in Texas by paying $30. The state application fee is $195 and the credit report fee is $15. This step is after you pass the SAFE test.
# Find a sponsoring broker
Get a broker to mentor and sponsor you. Your MLO license in Texas will now be activated.
