How to Get Your Mortgage License in Texas
Curious about what it’s like in mortgage? Get real insights and sweet deals on getting licensed.
Quick Answer
- Education requirement: Choose between Texas-SML (23 hours: 20 national + 3 Texas-specific) or Texas-OCCC (20 hours national)
- Complete timeline: 6-8 weeks from start to finish with proper planning and preparation using Online Instructor Led (OIL) or live webinar programs
- Key insight: Texas's dual agency system requires choosing the right licensing path based on your intended loan origination activities
Your Path to Success in Texas's Thriving Mortgage Market
Texas continues to experience robust population growth and housing demand, creating exceptional opportunities for mortgage loan originators. With loan officers earning a median wage of $74,180 according to the U.S. Bureau of Labor StatisticsBusiness And Financial Loan Officers.htm Ooh, and many Texas professionals earning significantly more through commission structures, the mortgage industry offers both financial rewards and job satisfaction.
Getting your Texas mortgage license opens doors to a rewarding career helping families achieve homeownership in the Lone Star State. With proper planning and comprehensive preparation, you can complete the entire licensing process in just 6-8 weeks.
Understanding Texas's Unique Dual Agency System
Two Licensing Agencies
Unlike most states with a single regulatory agency, Texas operates through two distinct licensing authorities:
Texas Department of Savings and Mortgage Lending (Texas-SML)
- Primary residential mortgage loans
- Traditional purchase and refinance mortgages
- Requires 23 hours of education (20 national + 3 Texas-specific)
- Application fee: $125 (plus $20 recovery fee) + $35 NMLS processing
- Best for: Traditional mortgage companies, banks, credit unions
Texas Office of Consumer Credit Commissioner (Texas-OCCC)
- Secondary mortgages and home equity loans
- Residential property tax loans
- Manufactured housing loans
- Requires 20 hours of national education only
- Application fee: $325 + $35 NMLS processing
- Best for: Specialized lending and non-traditional mortgage products
Choosing Your Licensing Path
Your choice depends on the types of loans you'll originate:
- Most mortgage professionals choose Texas-SML for primary residential mortgages
- Specialized lenders may need Texas-OCCC for secondary mortgages or home equity loans
- Some originators may need both licenses if handling diverse loan products
Both agencies work in conjunction with the NMLS (Nationwide Multistate Licensing System)Nationwide Multistate Licensing System Nmls, streamlining the application process while maintaining rigorous professional standards.
Step-by-Step Licensing Process
Step 1: Create Your NMLS Account
Visit the NMLS websiteMortgage.nationwidelicensingsystem.org and create your individual account to receive your unique NMLS number. This number stays with you throughout your career and across all states where you may become licensed.
Step 2: Choose Your Agency and Complete Required Education
Texas-SML Path (23 Hours Total)
- 20 hours: National SAFE Act requirements covering federal laws, ethics, non-traditional lending, and general mortgage knowledge
- 3 hours: Texas-specific content including home equity laws, reverse mortgages, and state regulations
Texas-OCCC Path (20 Hours Total)
- 20 hours: National SAFE Act requirements only
- No additional state-specific education required
Course Format Requirements All 20-hour pre-licensing courses must be completed through live classroom instruction, live webinar sessions, or online instructor-led (OIL) formats. Self-study courses do not meet NMLS requirementsCompliance Resources Mortgage Resources Secure Fair Enforcement For Mortgage Licensing Act Compliance for core and comprehensive pre-licensing education under the SAFE Act.
Step 3: Pass the NMLS Exam
Updated Exam Details:
- Questions: 120 multiple-choice (115 scored, 5 unscored)
- Time limit: 190 minutes (3 hours, 10 minutes)
- Passing score: 75% or higher
- Cost: Check current NMLS exam fees
Content Area Breakdown:
- Federal Mortgage Related Laws (24%)
- Mortgage Loan Origination Activities (27%)
- General Mortgage Knowledge (20%)
- Ethics (18%)
- Uniform State Content (11%)
Step 4: Submit Background Check and Application
Important Disqualification Information: Before proceeding with your application, understand that certain criminal history results in automatic disqualification:
- ANY felony conviction within the past 7 years is an automatic disqualifier
- Lifetime bans apply for felony convictions involving fraud, breach of trust, money laundering, and counterfeiting
- Revoked licenses in any state result in lifetime bans from ALL states
Required Components:
- Criminal background check through NMLS
- Credit report authorization
- Application fees (vary by agency - check current fee schedules)
- NMLS processing fee
Step 5: Complete Application Through NMLS
Submit your Individual Form (MU4) with complete documentation including:
- Employment history for past 10 years
- Residential history
- Financial information
- Disclosure of any criminal or regulatory history
- Education completion certificates
Step 6: Secure Employer Sponsorship
Your license remains pending until you secure employment with a state-licensed mortgage company and complete the sponsorship verification through NMLS. The employing company must hold the appropriate license with your chosen agency (Texas-SML or Texas-OCCC).
Learning about a day in the life of a mortgage loan originatorPre License A Day In The Life Of A Mortgage Loan Originator Resources provides insight into what your daily work will look like after licensing.
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.
Texas Market Opportunities
Real Estate Market Strength
Texas's appeal as both a business-friendly state and growing population center drives consistent mortgage demand. Key factors include:
- No state income tax attracting businesses and residents
- Strong job market across multiple industries
- Diverse housing markets from urban high-rises to rural properties
- Consistent population growth from domestic migration
Income Potential
Texas mortgage loan originators benefit from:
- Diverse housing price points creating opportunities across market segments
- Strong demand for both purchase and refinance mortgages
- Growing first-time homebuyer population
- Active investment property market
Based on industry data, Texas mortgage professionals can earn substantial incomes, with top performers earning six-figure incomes through commission-based compensation structures.
Realistic Timeline and Expectations
Typical Timeline Breakdown
Weeks 1-3: Education Phase
- Complete required coursework (20 or 23 hours depending on agency choice) through live/webinar instruction or OIL format
- Focus on comprehensive exam preparation
- Gather documentation for application
Week 4: Examination and Application
- Pass NMLS exam
- Submit complete license application
- Initiate background check and fingerprinting
Weeks 5-6: Processing Phase
- Background check completion
- Application review by chosen regulatory agency
- Address any additional documentation requests
Weeks 7-8: Employment and Approval
- Secure employment offer
- Complete employer sponsorship
- Receive active license status
Note: This timeline reflects the structured nature of required instructor-led courses and assumes first-time exam success.
Factors That Accelerate Success
- Quality Education: Choose NMLS-approved programs with comprehensive content that exceeds minimum requirements
- Exam Preparation: Invest in thorough test preparation to ensure success
- Complete Applications: Submit accurate, thorough applications to avoid delays
- Employment Networking: Begin job search during licensing process
Common Challenges and Solutions
Agency Selection
Challenge: Choosing between Texas-SML and Texas-OCCC
Solution: Consult with potential employers about which agency they're licensed with and the types of loans you'll be originating
Education Selection
Challenge: Choosing between different NMLS-approved course formats
Solution: Select established education providers offering live webinar or classroom instruction or approved OIL formats with comprehensive content
Exam Preparation
Challenge: Preparing for comprehensive exam content
Solution: Use practice exams, study guides, and test-taking strategies beyond basic coursework
Background Check Concerns
Challenge: Worry about past financial or legal issues
Solution: Understand disqualification criteria and consult with licensing professionals if you have concerns about your background
Texas-Specific Considerations
Continuing Education Requirements
After initial licensing, Texas requires 8 hours of annual continuing education including:
- 3 hours minimum of federal law updates
- 2 hours minimum of ethics/fraud/consumer protection/fair lending
- 2 hours minimum of non-traditional mortgage lending
- 1 hour of elective topics
Important Note: You are exempt from continuing education requirements in the same calendar year you complete your pre-licensing education, provided you also obtain your license in that same year.
Regulatory Environment
Your chosen agency maintains active oversight, requiring:
- Annual license renewals
- Compliance with state and federal regulations
- Ongoing supervision by licensed employers
- Detailed record keeping and reporting
Professional Development Opportunities
Texas's large and diverse mortgage market offers numerous advancement opportunities:
- Specialization in luxury properties or investment lending
- Branch management positions
- Team leadership roles
- Independent contractor opportunities
Cost Considerations
Investment Overview
The total cost to obtain a Texas mortgage license varies depending on your chosen agency path and education provider. Key cost components include:
Texas-SML License Path:
- Education: Varies by provider and package selected
- NMLS exam fee
- Application and processing fees to Texas-SML and NMLS
- Background check fees
- Credit report fee
Texas-OCCC License Path:
- Education: Generally lower cost due to fewer required hours
- NMLS exam fee
- Application and processing fees to Texas-OCCC and NMLS
- Background check fees
- Credit report fee
Important Fee Considerations:
- Licensing fees are subject to change annually
- Always verify current fee schedules with the appropriate agency before applying
- Background check and fingerprinting costs are set by third-party vendors
- Some employers may reimburse certain licensing costs
This investment typically pays for itself quickly in Texas's active mortgage market, where successful loan originators can earn substantial incomes through competitive salary and commission structures.
Success Strategies
Pre-Licensing Phase
- Research both agencies to understand which fits your career goals
- Choose NMLS-approved education providers with strong track records
- Plan for structured timeline with instructor-led courses
- Begin networking with mortgage professionals and companies
- Review background check requirements carefully
Post-Licensing Phase
- Focus on building referral relationships with real estate agents
- Develop expertise in popular Texas loan programs
- Consider specializations like investment property or luxury home financing
- Maintain compliance with all regulatory requirements
Your Texas Mortgage Career Awaits
Texas's dynamic real estate market, combined with the state's business-friendly environment and growing population, creates exceptional opportunities for mortgage professionals. The licensing process, while requiring careful navigation of the dual agency system, is straightforward with proper preparation and planning.
Understanding how to get licensed as an MLOPre License How Do I Get Licensed As A Mortgage Loan Originator Resources provides valuable context for how education fits into your complete licensing strategy.
Ready to start your Texas mortgage license journey? Begin with comprehensive education that prepares you for both exam success and career excellence. Choose NMLS-approved programs that exceed minimum requirements and provide the foundation for long-term success in Texas's competitive but rewarding mortgage market.
The Lone Star State's mortgage industry needs qualified, professional loan originators to serve its growing population and active real estate market. Your career in helping Texas families achieve homeownership starts with taking the first step toward licensing. With proper preparation and dedication, you can join the ranks of successful Texas mortgage professionals and build a rewarding career in this dynamic field.