Essentials in Obtaining a Mortgage Broker License Texas
In order to work at or operate a mortgage brokerage business in the state of Texas, you must first get your Texas mortgage company license. Companies who obtain this license are guaranteeing to their clients that they meet all the state and federal requirements for this occupation. There are federal guidelines and requirements that must be fulfilled to work as a mortgage broker in any state, but states are also allowed to set their own state criteria. For this reason, obtaining a mortgage company license in the state of Texas follow a different process than would be found in any other state.
Mortgage loan originators who will be working with residential real estate will obtain their license from the Department of Savings and Mortgage Lending. These licenses will account for the majority of applicants for a mortgage company license. However, working with other types of loans, such as residential property tax loans and manufactured housing loans, may require a license issued by the Office of the Consumer Credit Commissioner.
Educational Requirements
Regardless of which agency that you will go through for licensing, the process will be completed on the National Mortgage Licensing System (NMLS). The first step is to make sure that you have met all of the pre-license educational requirements for obtaining a mortgage company license in Texas. If you are applying for your license through the Department of Savings and Mortgage Lending, the requirement is 23 hours and 20 hours for the Office of the Consumer Credit Commission applicants. Both agencies require that certain topics be included in the electives offered for the education, so it’s imperative that you check with each agency before enrolling in any classes.
In addition to these hours, federal law requires that all mortgage loan originator applicants complete 20 additional hours of education through the SAFE courses, which can be taken after completion of the state-required pre-license education.
NMLS Requirements
After you have completed your pre-licensure education, you can begin working on all of the activities you need to do through the NMLS portal. You will need to pass the NMLS SAFE mortgage licensing exam as well as any state licensing exams that are required.
Once the exams have been completed with a passing score, you will complete your NMLS and state license applications, which includes the following components:
- Financial statements
- Company formation documents
- A business plan and organizational charts
- Disclosures
- FBI and state criminal history and background checks
- Credit reports
Fees
Many of the applications and other documents require a fee. A breakdown of the estimated fees includes:
- Department of Savings and Mortgage Lending application: $479 for loan originators and $275 for a mortgage company license
- Office of the Consumer Credit Commission application fee: $325.
- NMLS application fee: $30
- FBI Criminal Background Check: $35.25
- Credit Report: $15
Mortgage Company licensees should be prepared to cover all of the required fees throughout the licensure process.
Maintaining a License
After you have successfully completed all of the steps to securing a mortgage company license in the state of Texas, you are ready to begin working in your chosen profession. However, it’s important to remember that you must also complete activities to maintain licensure. Regardless of whether you work independently, for a small local firm, or for a major national lending company, you will want to keep your NMLS account valid with current contact information. License holders are required to complete 8 hours of continuing education annually to maintain their license and renew their license on November 1 of each year. Prior to this deadline, it’s important to check NMLS for information regarding what is necessary for renewal.
The state of Texas has a robust real estate market with plenty of properties of all types, and many communities are growing. Pursuing a career in mortgage brokerage can be very fulfilling and rewarding for many individuals. If you think that a career in mortgage brokerage may be a good fit for you, it’s essential that you understand the steps that are required for compliance. Knowing this information will ensure that you get through the licensure process quickly so that you can start working in your profession as soon as possible.