Texas Mortgage Company License: 4 Things You Need to Know

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mortgage company license in TexasEverything is bigger in Texas, including the positive economic growth. Texas sustained an increase in growth at a quarterly annualized rate of 4.7%, according to the Texas Business Cycle Index, leading to a tightening housing market.

As the economy of the state continues to grow, the mortgage industry is benefiting, despite recent natural disasters, such as Hurricane Harvey. According to the 2016 NMLS Mortgage Industry Report, the growth of the industry increased by 14% in the state of Texas.

This boost to the mortgage industry is driven primarily by home purchases. According to NMLS data, mortgage originations by state-licensed companies increased by 20% between 2015 and 2016.

With the mortgage industry in Texas showing no signs of slowing down anytime soon, now is the time to enter the market. To get things started, you need to determine the state’s licensing requirements. Here are four key things to keep in mind as you move through the process to obtain your Texas Mortgage Company License.

What License Is Required?

There are two regulatory agencies in Texas that oversee the mortgage industry- the Texas Department of Savings and Mortgage Lending (SML) and the Office of the Consumer Credit Commissioner (OCCC) – each with their own set of licensing requirements and fees.

The state of Texas offers a few licenses for mortgage professionals and companies:

  • The Mortgage Company License (company license)
  • Mortgage Banker Registration (company registration)
  • Mortgage Loan Originator License (individual license)

Who Needs a Texas Mortgage Company License?

As a business entity looking to offer or sell residential mortgage loans for money or gain, directly or indirectly, you are going to need a mortgage company license. The Texas SAFE Act also requires individuals who may provide clerical or loan processing support as independent contractors to be licensed. In fact, individuals who might not have been required to be licensed in the past may be required to complete the licensing process.

Mortgage companies in Texas are also required to maintain at least one physical office within the state as a condition of licensure. If you have a Direct Endorsement from the Federal Housing Administration (FHA), you can bypass the state’s brick and mortar requirement by qualifying for the Mortgage Banker Registration.

Assessing Your Requirements

In Texas, all residential mortgage lenders are required to complete at least 23 hours of pre-licensure education. Additionally, three of those 23 hours must be Texas specific. This education needs to be NMLS approved in order to qualify.

MLG Fast Class is an industry leading education provider, offering both online and in-person courses for mortgage pre-licensure and continuing education. All courses are NMLS approved and can be taken at your own pace while in per suite of your mortgage license.

Education is just one requirement. It is important to comprehensively review and understand your state’s licensing requirements before moving forward with any license application.

All Texas mortgage licenses are managed through NMLS. When looking to apply for a mortgage license in Texas, consult The NMLS Resource Center for valuable information for mortgage and consumer lending licensing requirements.

What The Mortgage Licensing Group Can Do For You

Texas is a bustling economy with huge growth potential waiting to be tapped into. Now that you have a sense of some preliminary requirements to get licensed in Texas, MLG is here to guide you through the entire licensing process. Contact us today, we make licensing easy!

The Mortgage Licensing Group, Inc. is a full-service mortgage licensing firm headquartered in Southern California that is recognized throughout the industry as an experienced and reliable service provider. Established in 2006, our company has been on the forefront of the ever-changing rules and regulations, helping alleviate the often daunting task of meeting the diverse state licensing requirements for our clientele.