How Do I Become a Licensed Mortgage Loan Originator in Texas?

The mortgage industry offers excellent career opportunities, with loan officers earning a median salary of $74,180 according to the U.S. Bureau of Labor Statistics, and many professionals earning significantly more through commission-based structures. If you're ready to join this dynamic field, follow these six steps to become a licensed mortgage loan originator in Texas.

Step 1: Choose Your Texas Licensing Agency

Texas is unique among states because it has two agencies that issue mortgage licenses. Your first decision determines your entire licensing path.

Texas Department of Savings and Mortgage Lending (Texas-SML)

• Education requirement: 23 hours (20 national + 3 Texas-specific)
• Best for: Traditional mortgage companies, banks, credit unions

Texas Office of Consumer Credit Commissioner (Texas-OCCC)

• Education requirement: 20 hours (national only)
• Best for: Secondary mortgages, home equity loans, manufactured housing

Most RMLO licenses are issued by the TX-SML, you are required to obtain a license from the Office of Consumer Credit Commissioner IF you originate the following types of loans: Secondary Mortgage Loans or Home-equity loans. When in doubt, consult with potential employers about their preference, as this decision affects your education requirements.

Step 2: Create Your NMLS Account and Complete Education

Get Your NMLS Number

Visit the Nationwide Multistate Licensing System (NMLS) websiteMortgage.nationwidelicensingsystem.org to create your account and receive your unique NMLS number. This number follows you throughout your career, regardless of where you work or which states you're licensed in.

Complete Required Education

The quality of your education significantly impacts your exam success. While Texas requires 20-23 hours depending on your agency, understanding whether mortgage lendingResources Pre License Should I Become A Mortgage Loan Originator Mortgage.aceable.com is right for you can help you navigate the education selection process.

Texas-SML Requirements (23 hours total):

• 3 hours federal law
• 3 hours ethics and fraud prevention
• 2 hours non-traditional lending
• 12 hours general electives
• 3 hours Texas-specific topics (home equity, reverse mortgages, compliance)

Texas-OCCC Requirements (20 hours total):

• Same federal requirements as SML
• No state-specific requirements

Smart candidates choose comprehensive programs that exceed minimum requirements and set you up for long-term success.

Step 3: Schedule and Pass the NMLS Exam

Exam Details

• Questions: 125 total (115 scored, 10 unscored)
• Time limit: 190 minutes
• Passing score: 75%
• According to the Nationwide Multistate Licensing System & Registry (NMLS), the national NMLS test pass rates are 55% for the first attempt

Exam Content Areas

The exam tests your knowledge in five key areas:

• Federal mortgage laws (23%)
• General mortgage knowledge (23%)
• Ethics (16%)
• Mortgage origination activities (25%)
• Uniform state content (13%)

Retake Policy

• Wait 30 days between first and second attempts
• Wait 30 days between second and third attempts
• Wait 180 days after third failure before attempting again

The low pass rates underscore the importance of thorough preparation. Many successful candidates invest in comprehensive exam prep that goes well beyond basic education requirements. Understanding how hardResources Pre License Is The Nmls Exam Hard What To Know Before You Start Studying Mortgage.aceable.com the NMLS exam really is can help you prepare appropriately.

Step 4: Complete Background Check and Submit Application

Criminal Background Check

The background check process involves:

• Authorization through your NMLS account
• Scheduling fingerprint appointment via Fieldprint
• FBI and state criminal history review

Credit Report Authorization

A credit report authorization is required as part of the licensing process.

Application Submission

After passing your exam and initiating background checks, submit your license application through NMLS. Pay attention to all required documentation and double-check information accuracy to avoid processing delays.

Most background issues aren't automatically disqualifying. Texas considers factors like the nature of any offense, how long ago it occurred, and its relationship to mortgage origination duties.

Step 5: Navigate the Approval Process

Processing Timeline

• Background check: 2-3 weeks typically
• Application review: 1-2 weeks after complete submission
• Total processing: Usually 3-5 weeks

Common Delays

• Incomplete applications
• Missing documentation
• Background check issues requiring additional information
• Failure to respond promptly to regulator requests

Stay proactive during this phase by monitoring your NMLS account regularly and responding quickly to any requests for additional information.

Step 6: Secure Employer Sponsorship

Your license remains in pending status until your employer sponsors you through NMLS. This final step involves:

• Finding employment: Research mortgage companies, banks, and credit unions in your area
• Application process: Tailor your resume to emphasize your new license and relevant skills
• Sponsorship verification: Your employer completes the verification through NMLS
• License activation: Once sponsorship is approved, you can legally originate loans

Employment Considerations

Some employers offer training programs for new licensees, while others prefer candidates with sales or financial services experience. Consider what type of environment aligns with your career goals and personality. Learning about daily responsibilitiesResources Pre License A Day In The Life Of A Mortgage Loan Originator Mortgage.aceable.com can help you make informed decisions during the job search process.

Timeline Expectations

With proper planning and preparation, most candidates complete the entire process in 6-8 weeks:

Weeks 1-2: Education Phase

• Complete pre-licensing courses
• Pass final course exams
• Receive completion certificates

Weeks 3-4: Testing and Application

• Schedule and take NMLS exam
• Submit license application
• Initiate background check

Weeks 5-6: Processing

• Background check completion
• Application review by regulators
• Address any additional requirements

Weeks 7-8: Employment and Final Approval

• Secure employment offer
• Complete employer sponsorship
• Receive active license status

Success Tips for Each Step

Education Success

• Choose comprehensive programs over minimum requirements
• Take advantage of exam prep resources
• Study consistently rather than cramming
• Join study groups or find study partners

Exam Success

• Take practice exams to identify weak areas
• Focus on understanding concepts, not memorization
• Read questions carefully and watch for keywords
• Don't second-guess yourself on questions you feel confident about

Application Success

• Double-check all information for accuracy
• Submit complete documentation the first time
• Respond promptly to any regulator requests
• Keep detailed records of all submissions