Before we can discuss MLO License Education Requirements in Texas, it is crucial to acknowledge that mortgage licenses are issued by two distinct agencies. Specifically, in Texas, the responsibility of supervising and regulating mortgage licenses falls upon the Texas-SML (Department of Savings and Mortgage Lending) and the Texas-OCCC (Office of Consumer Credit Commissioner).
Under the purview of the TX-SML, individuals aspiring for MLO licensure must complete 23 hours of NMLS approved education. This comprehensive education encompasses federal law, ethics, nontraditional mortgage lending instruction, and Texas-specific instruction.
Conversely, the TX-OCCC necessitates individuals seeking MLO licensure to fulfill 20 hours of NMLS approved education. This education covers federal law, ethics, and nontraditional mortgage lending instruction. Notably, it is important to highlight that the TX-OCCC does not impose any state-specific education requirement.
Specifically, if licensing through the TX-SML, the 20 hours of education includes instruction on 3 hours of federal law, 3 hours of ethics, covering fraud, consumer protection, and fair lending issues. The course also covers 2 hours of non-traditional mortgage lending, 12 hours of undefined elective education, and 3 hours of Texas state-specific defined electives.
If you are seeking licensure through the TX-OCCCC, you will need to complete instruction on 3 hours of federal law, as well as 3 hours of ethics, which covers fraud, consumer protection, and fair lending issues. Instruction must also include 2 hours of non-traditional mortgage lending training, and 12 hours of undefined elective education.
The TX-SML MLO Application Checklist from the NMLS can guide you through the process of becoming a licensed MLO through the TX-SML. View TX-SML Checklist
The TX-OCCC MLO Application Checklist from the NMLS can guide you through the process of becoming a licensed MLO through the TX-OCCC. View TX-OCCC Checklist
MLO applicants in in Texas, whether licensing through TX-SML or TX-OCCC, must complete the SAFE 20 Hour Education course and pass the NMLS National MLO exam to begin the licensing process. Our multiple format options for the 20-hour course allow you to meet your study needs and fit your schedule. View our course and test preparation options here.
As mentioned, if licensing through the Texas-SML, one of MLO License Education Requirements in Texas includes completing 3 hours of Texas-defined electives. This course will focus on topics such as Texas Home Equity Loans, Texas Reverse Mortgages, Licensing Requirements for MLO’s, and compliance with TX-SML operations. You can view our Online Self-Study option below.
In Texas, two agencies, the TX-SML and the Office of Consumer Credit Commissioner (TX-OCCC), issue Mortgage Loan Originator licenses. To ensure a smooth process, it is crucial to verify the specific agency you need to apply with. While the majority of RMLO licenses are issued by the TX-SML, there are exceptions. If you originate certain types of loans, such as residential property tax loans and manufactured housing loans, you must obtain a license from the TX-OCCC. Moreover, for secondary mortgage loans, unless you already hold a TX-SML license, you must license through the TX-OCCC. Similarly, for home equity loans, unless you already possess a TX-SML mortgage license, licensing with the TX-OCCC is required.
As mentioned previously, meeting the MLO license education requirements in Texas involves passing the NMLS National MLO Exam and acquiring your NMLS ID Number. To support you in these vital steps, we have compiled a series of informative short videos. Below, you will find a collection of videos that will walk you through obtaining your NMLS ID, scheduling the exam, and provide valuable tips to excel in the exam with confidence. By watching these videos, you can ensure you are thoroughly prepared and equipped to meet Texas’s pre-licensing requirements successfully.. Subscribe to our YouTube Channel for more great tips and industry-related news!