Become a Loan Officer in Texas

If you’d like to become a loan officer in Texas, there is a clear path to follow to obtain your Texas MLO license and start your career in the mortgage industry. Whether you’re drawn to the fast-paced real estate markets of Austin, Houston, Dallas, or other growing cities across Texas, the demand for skilled mortgage loan originators (MLOs) is strong. The terms mortgage loan originator and licensed mortgage loan officer are often used interchangeably, and both represent the important role of guiding homebuyers to secure the right home loan.

As a successful loan officer, you’ll need both a solid understanding of the mortgage industry and financial regulations, as well as strong interpersonal and communication skills. Before you can start discussing interest rates with customers or recommending refinancing options, you’ll need to obtain your mortgage license. To get your mortgage loan originator license in TX, you’ll first learn national and Texas-specific lending guidelines, followed by passing an exam to demonstrate your expertise.

Let’s dive into our step-by-step guide of how to become a TX loan officer. You can also check out our video tutorial on how to become an LO in Texas.

Step 1: Request your NMLS account

Start your journey to become an mlo by visiting the NMLS website to request an account. NMLS stands for the Nationwide Multistate Licensing System & Register or the Nationwide Mortgage Licensing System. If you already have an NMLS account, and are looking to add Texas to your mortgage license, skip to step #3.

Step 2: Get your NMLS ID

Once you’ve registered with the NMLS, you’ll receive an individual NMLS ID number to use throughout your career as a licensed loan officer. The same NMLS ID is used for your license in Texas and any other states you might consider getting licensed in like Colorado, Arizona or Oklahoma.

Step 3: Review the Texas mortgage licensing requirements

Check Texas’s state-specific licensing requirements through Texas MLO license requirements on NMLS’s Resource Center. Here, you’ll find the additional steps required to obtain your MLO license in Texas. You will want to complete this step for any additional state you’d like to get licensed in.

Step 4:  Complete national and Texas pre-licensing coursework

Complete the required 20 hours of pre-licensing coursework. Pre-licensing classes for becoming a loan officer cover a range of topics from mortgage industry fundamentals and financial regulations to ethics and professional conduct. The Texas Department of Savings and Mortgage Lending also requires 3 additional hours of pre-licensing courses that are dedicated to state-specific laws and regulations. Morty recommends Oncourse Learning as a pre-licensing coursework provider.

Step 5: Prepare for the national mortgage SAFE Test

After you’ve completed your 20 hours pre license course and the additional 3 hours of Texas specific education, it’s time to study for your Secure and Fair Enforcement (SAFE) exam. The SAFE exam was instituted by Congress as part of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) of 2008.

Purchase your SAFE test prep materials and practice tests to begin studying.

Step 6: Pass the national SAFE exam

The SAFE exam is 190 minutes long, and costs $110. Schedule your SAFE test when you feel ready. To get your MLO license, you’ll need to pass the NMLS’s SAFE Mortgage Loan Originator Test with a score of 75% or higher. Only 55% of first time test takers pass the exam, so make sure you take the time to study. If you do not pass the SAFE exam, you can wait 30 days and take it again.

Step 7: Complete a background check and get fingerprinted

As a prospective MLO, you must complete a criminal background check. The background check can be initiated through your NMLS portal. You must also make an appointment to have your fingerprints taken, which can also be arranged through the NMLS portal. The current cost of both the background check and the fingerprinting is $36.25.

Step 8: Complete and Submit your MU4 to NMLS

Once you’ve passed your test and done your background checks, you’re ready to file your Individual (MU4) Form. Head to your NMLS portal to file your Individual (MU4) Form and pay your NMLS fees. The cost to file your mortgage loan officer license in Texas is: $30 NMLS application fee, $195 state application fee and a $15 credit report fee.

Step 9: Get sponsored by a mortgage company

After finding and being hired by a mortgage originator, that’s either a mortgage broker like Morty or a mortgage lender like a bank, credit union or other financial institution, you can initiate the sponsorship process by submitting the company’s credentials to the NMLS for verification. As soon as NMLS gives final approval — congrats, you officially have your mortgage loan originator license in Texas!

Are you looking for mortgage sponsorship in Texas?

Once you’ve completed the steps to become a mortgage loan officer, you’ll need to find a mortgage company to sponsor your NMLS license. We’d love for you to be sponsored by Morty! Morty is a technology-enabled online licensed mortgage broker. Morty offers loan officers, and their clients, a better, more seamless mortgage experience through our lender marketplace, competitive pricing, affordability tools, underwriting technology, along with the built-in support from our processing and fulfillment teams.

Learn more about working with our all of our mortgage lenders, our propriety technology, local Texas resources and our full-support loan processing and fulfillment team by filling out the form below.

Get your MLO license in multiple states.

Are you interested in getting your loan officer license in multiple states? To become licensed in states other than Texas, you’ll need to fulfill the additional education requirements for each state and file your Individual (MU4) Form for each state through NMLS.

Morty is licensed in 45 states and can help you quickly get sponsored in multiple states. To get started, we put together mortgage licensing guides for many states including: New Mexico, North Carolina, Florida and Arkansas.