How to Become a Loan Officer in Texas

How to Become a Loan Officer in Texas

How to Become a Loan Officer in Texas

To obtain a Texas SML Loan Officer (MLO) license, you must follow a series of steps outlined by the Texas Department of Savings and Mortgage Lending's Division of Licensing. Contact Division of Licensing staff by phone at 512-475-1350 or toll-free at 877-276-5550 or send your questions

via email to nmls@sml.texas.gov for additional assistance and the Nationwide Multistate Licensing System (NMLS). Here’s a straightforward, step-by-step guide to help you through the process:

  1. Create an NMLS Account
      Start by setting up an individual account on the NMLS website (mortgage.nationwidelicensingsystem.org). This straightforward process will give you a unique NMLS ID number, which you’ll use throughout the licensing process. It’s a quick process—provide your personal information and confirm your account.
  2. Complete Pre-License Education (PE)
    You must complete 23 hours of NMLS-approved pre-licensing education. This includes:
    1. 20 hours of general mortgage-related coursework covering federal laws, ethics, and loan origination basics.
    2. 3 hours of Texas-specific content focusing on state laws and regulations.
       These courses can be taken online. Click here to view the Texas Loan Officer Online Course bundle, offering incredible flexibility. Our course and custom schedule options allow you to select the option that best suits your needs. Keep your completion certificate handy, as the provider typically reports it to NMLS on your behalf.
  3. Pass the SAFE MLO Exam
    Schedule and pass the National SAFE Mortgage Loan Originator test with Uniform State Content through your NMLS account. Here is guidance on scheduling your NMLS exam.
    1. The exam consists of 115 scored questions, costs $110, and takes approximately 3 hours to complete.
    2. You need a score of 75% or higher to pass.
    3. Study materials and practice tests are recommended, as the first-time pass rate is approximately 58%. Our TX MLO Course bundle includes a robust test preparation program; you get the results if you put in the work. If you have already completed a 20-hour course and require additional test preparation resources, we have you covered with our stand-alone NMLS test prep program. Schedule via the NMLS website and take it at a Prometric testing center (or online if you qualify for accommodations). We are here to support you every step of the way.
  4. Submit Your License Application (MU4 Form)
    Log in to your NMLS account and file the Individual Form (MU4) for a Texas MLO license. You’ll need to provide:
    1. Personal details, including residency and employment history.
    2. Proof of a high school diploma or equivalent.
  5. Fees: $120 (application fee), $30 (NMLS processing fee), $15 (credit report), and approximately $36.25 for background checks.
  6. Authorize a credit report and submit fingerprints for a criminal background check. You'll need to complete a fingerprint-based background check with an NMLS-authorized live scan service provider.
  7. Get Sponsored by an Employer
      It's important to note that you can’t originate loans independently. To become a licensed Loan Officer, you need a licensed lender or company to sponsor your license. This means that once you’re hired, your employer will verify sponsorship through NMLS by linking their credentials to your account. Your license remains “pending” until this step is complete.
  8. Wait for Approval
      After submitting everything, Texas reviews your application. Your license will be issued if all requirements are met, including education, exam, fees, background checks, and sponsorship. This final step of approval marks the culmination of your efforts. Check your NMLS account for status updates.

Key Tips:

  • Timing: Start early—education and exam prep can take weeks, and approval depends on how fast you complete each step.
  • Costs: Total fees are roughly $250–$300, plus the cost of your education course (varies by provider, often $450–$600, AAA Mortgage Training’s package costs $325.49 plus the $34.50 NMLS recording fees for a total of $359.99 with instructor access by email, chat, phone or text message throughout the course and test prep period.) TX NMLS MLO Checklist indicates total licensing costs paid at license application:

TX Loan Officer License Fees submitted via the NMLS

  • NMLS Initial Processing Fee: $30
  • Texas License/Registration Fee: $120
  • [This amount includes a $20 Recovery Fund Fee.]
  • Texas Application Fee: $0.00
  • Credit Report: $15
  • FBI Criminal Background Check: $36.25
  • Renewal: Once licensed, you’ll need 8 hours of continuing education annually to renew by December 31.

That’s it! Once approved, you can work as a Mortgage Loan Originator (MLO) in Texas, assisting clients in securing mortgage loans. Please let me know if you need details on any step.

  • Create an NMLS Account. Set up an individual account on the NMLS website to receive a unique NMLS ID number. 
  • Complete Pre-License Education (PE). Finish 23 hours of NMLS-approved pre-licensing education, including 20 hours of general mortgage-related coursework and 3 hours of Texas-specific content. 
  • Pass the SAFE MLO Exam and the National SAFE Loan Officer Test with Uniform State Content through your NMLS account. The exam consists of 115 scored questions, costs $110, and requires a score of 75% or higher to pass. 
  • Submit Your License Application (MU4 Form) - File the Individual Form (MU4) on the NMLS website, providing your details, proof of a high school diploma or equivalent, and paying the required fees. Authorize a credit report and submit fingerprints for a criminal background check. 

TEXAS NOTES

This checklist is not a substitute for reviewing the applicable statutes and rules.

If an applicant has been previously licensed in Texas as an originator and is reapplying for licensure, any continuing education deficiencies stemming from their prior Texas licensure must be resolved before they can be approved as an originator. Applicants that reapply with prior education deficiencies must take “make-up” courses

Note: The Pre-licensure Education must be completed within 3 years preceding the date of the application. Submitting a license application is NOT enough to prevent the expiration of test results or pre-licensure education; the application must be APPROVED before the test expiration clock will reset. Texas cannot guarantee a processing time for your application. Apply well in advance of the five-year expiration for testing and 3-year expiration of pre-licensure education.

MLOs and the public may rely on information provided in NMLS to demonstrate and determine license status. Sponsoring companies will receive an email indicating the issuance of licenses for new applicants. Individuals will receive notice via the NMLS concerning the change in status to “Approved.”

Once these steps are completed, secure sponsorship from a licensed Loan Officer, lender, or company, and wait for approval from the Texas Department of Financial Institutions.