How Do I Become a Licensed Mortgage Loan Originator in Texas?
Curious about what it’s like in mortgage? Get real insights and sweet deals on getting licensed.
Quick Answer
- Complete pre-licensing education, pass the NMLS exam, and secure employer sponsorship to become licensed
- Choose between two Texas licensing agencies: Texas-SML (23 hours of education) or Texas-OCCC (20 hours of education)
- Timeline typically takes 6-8 weeks from start to finish with proper planning
Step 1: Choose Your Texas Licensing Agency
Texas is unique among statesPre License How Do I Get Licensed As A Mortgage Loan Originator Resources 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 MLO licenses are issued by Texas-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) website 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, smart candidates choose comprehensive programs that exceed minimum requirements.
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
Important: NMLS requires the 20-hour national education to be completed through live classroom, live webinar, or Online Instructor-Led (OIL) formats only. Self-paced options are not available for the national requirement.
Step 3: Schedule and Pass the NMLS Exam
Exam Details
- Questions: 120 total (115 scored, 5 unscored)
- Time limit: 190 minutes
- Passing score: 75%
Exam Content Areas
The exam tests your knowledgePre License What Are The Texas Mortgage Education Requirements Resources in five key areas:
- Federal Mortgage-Related Laws: 24%
- Mortgage Loan Origination Activities: 27%
- General Mortgage Knowledge: 20%
- Ethics: 18%
- Uniform State Content: 11%
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 exam is challenging and requires thorough preparation. Many successful candidates invest in comprehensive exam prep that goes well beyond basic education requirements.
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
- Cost: $36.25 (includes fingerprinting)
Credit Report Authorization
A credit report authorization is required as part of the licensing process (Cost: $15, may be paid by employer).
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.
Important: Most background issues aren't automatically disqualifying, but certain convictions are:
- ANY felony conviction in the past 7 years is an automatic disqualification
- Felony convictions for fraud, breach of trust, money laundering, or counterfeiting are lifetime bans (regardless of timing)
- License revocation in any state results in lifetime bans from ALL states
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
Is Mortgage Lending Right for You? What to Expect from MLO Jobs
MLOs help people become homeowners. If you are motivated and detail-oriented, this career may be a good fit for you.
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.
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 submissionsPre License A Day In The Life Of A Mortgage Loan Originator Resources
Common Pitfalls and How to Avoid Them
Inadequate Exam Preparation
The exam is challenging and requires substantial preparation. Invest in quality exam prep materials and comprehensive education programs.
Choosing the Wrong Texas Agency
Applying with the incorrect agency causes expensive delays and may require starting over. Research thoroughly or consult with education providers who understand the distinction.
Background Check Issues
Be completely honest on all applications. Attempting to hide information almost always creates bigger problems than the original issue.
Employment Delays
Start networking and job searching before completing your license. Having employment lined up accelerates the final sponsorship step.
Your Mortgage Career Awaits
Following these six steps systematically gives you the best chance of licensing success in the shortest timeframe. The mortgage industry offers excellent earning potential, professional growth opportunities, and the satisfaction of helping people achieve homeownership.
Remember that getting licensed is just the beginning. Successful mortgage loan originators continue learning throughout their careers, building professional relationships, and staying current with industry changes.
Ready to Begin Your Journey?
The sooner you start Step 1, the sooner you'll be earning in your new career. Choose a comprehensive education program that will prepare you not just to pass the examPre License First Time Taking The Nmls Test Read This Resources, but to succeed as a mortgage professional.
Important reminder: Always verify current requirements, fees, and content areas directly with NMLS, Texas-SML, or Texas-OCCC, as regulations can change. This guide provides the framework based on current standards, but official sources should be your final reference for the most up-to-date information.