How to launch your career as a mortgage loan officer in Texas
Texas is a land of opportunities and growth, especially if you are considering a career in the mortgage lending industry.
Working as a mortgage loan officer in Texas is a promising career for anyone who wants to join a dynamic, rewarding, and fulfilling profession.
Due to Texas’ stable economic outlook and a strong job market, the Lone Star state is welcoming skilled professionals, migrants, and homebuyers from across the country.
It is no surprise then that the demand for residential real estate in Texas has been growing significantly in the last few years.
Dallas, Texas, Houston, Fort Worth, and San Antonio are some of the most popular real estate markets in Texas which continue to attract the interest and investment of homebuyers.
For homebuyers, getting a mortgage is an essential part of completing their purchase and making their homeownership dream a reality.
Based on their eligibility, credit score, financial health, and creditworthiness, a homebuyer can apply for a suitable mortgage for buying a new home or refinancing an existing one.
This is where a mortgage loan officer comes into the picture as a licensed professional who helps individuals choose the best mortgage plan for their needs and goals.
Mortgage loan officers are employed by banks, credit companies, and financial institutions to assist borrowers in navigating through the various stages of getting a mortgage loan.
Working in the mortgage lending industry as a loan officer in Texas can pave a lucrative and flexible career path for you.
Did you know skilled loan officers in TX can make as much as $150K annually inclusive of their salary and other financial benefits?
If you are someone who is good with numbers, and finance and wants to help people, a career as a mortgage loan officer (MLO) in Texas can be a great profession for you.
All you need to get started is an MLO license in Texas which will allow you to work with clients anywhere in the state and help them in the loan application process.
To help you get started on this path, we have put together this comprehensive guide which covers all the aspects of working in the mortgage lending industry.
Understanding the job profile of a Mortgage Loan Officer
Before we give you a detailed look into what it takes to obtain a mortgage loan originator license in Texas, let us take a step back and understand what that profession is all about.
As a mortgage loan officer, a day in your life will be filled with a myriad of duties and tasks that will not be a standard one-size-fits-all role.
You will be the go-to professional with your knowledge, advice, and expertise and act as a bridge between lenders and borrowers.
Your job will focus on assisting borrowers at different stages of getting a mortgage loan - from filling up the application to comparing the various mortgage plans.
Mortgage loan officers are tasked with completing a range of activities and duties as part of their job profile. Some of the common responsibilities of a loan officer are listed below.
- Meet and interview individuals to understand their loan requirements and needs
- Evaluate the various applications of interest from potential clients
- Collect financial and personal documents required for a loan application
- Assess the financial eligibility and creditworthiness of individuals
- Educate clients about the various types of loans and their respective terms
- Conduct credit checks and background verification to assess the credibility of borrowers
- Guide clients in completing the loan application and its various sections
- Approve or reject requests for a mortgage loan on behalf of a lender
- Liaison with industry professionals such as underwriters to facilitate the process
- Maintain and nurture client relationships throughout the mortgage loan tenure
- Ensure regulatory compliance with banking, mortgage, and industry laws
- Keep records of transactions, interactions, and other important client details
The job profile of a mortgage loan officer is diverse and multi-dimensional which often requires various specializations to meet the objectives of lenders and borrowers.
Needless to say, a mortgage loan officer plays a pivotal role by handling financial, operational, administrative, and customer service tasks and responsibilities.
If you are interested in working as a MLO in Texas, be prepared to juggle multiple tasks and activities on a daily basis.
Note that the scope of your daily responsibilities and job duties depends greatly on your employer, your skills, and your industry experience level.
Benefits of choosing a career as a Mortgage Loan Officer in Texas
Do you wish to make a career in a growing, dynamic industry where you can work with clients and help them achieve their home ownership goals?
With a median annual pay of $70K, a career in the Texas mortgage lending industry as a licensed loan officer might just be the profession for you.
MLOs work as specialized professionals who are highly sought after due to the growing demand for housing in Texas.
The Bureau of Labor Statistics in the U.S. has predicted that the job outlook for licensed mortgage loan officers is expected to grow significantly in the coming years.
This means now is a good time to plan your career and embark on a financially rewarding and emotionally satisfying career journey.
Here’s why working as a MLO can be an exciting and challenging career path for you.
- Loan officers are responsible for helping individuals achieve their home ownership dreams. By working with borrowers directly, loan officers act as enablers.
- Loan officers guide individuals through the process of completing, submitting, and reviewing applications and documents required for getting a home loan.
- Loan officers have the power to approve or reject loan applications and make decisions on the basis of the creditworthiness of individuals.
Overall, a mortgage loan officer occupies a cornerstone position at the intersection of finance, accounting, and business.
Be it residential or commercial mortgages, loan officers are experts who are responsible for shaping the direction of how a lender disburses loans to borrowers.
Next, let us walk you through what it takes to obtain your Texas MLO license and start working in the industry.
Steps to become a mortgage loan officer in Texas
If you are keen to work in the mortgage lending industry and begin your career, the path is clear and well-established for you to follow.
Step 1: Meet Eligibility Requirements
To work as a licensed mortgage loan officer in Texas, you must meet the minimum eligibility requirements established by the NMLS (Nationwide Multistate Licensing System).
The NMLS is the official authority and regulatory body that oversees the licensing of individuals and firms working in the mortgage lending industry.
As per the NMLS eligibility requirements, you must:
- Be at least 18 years of age or older
- Be a legal resident of Texas and hold a valid proof of residence
- Have a high school diploma or GED equivalent
If you meet the basic statutory requirements, you can register yourself on the NMLS licensing portal and obtain your unique NMLS identification number.
Step 2: Complete Educational Requirements
Like any professional career, you need to complete a minimum level of education to acquire the necessary knowledge and skills for working successfully.
Be it the financial acumen and understanding of regulatory guidelines or the interpersonal and communication skills, you need to obtain the necessary training to help your clients.
This is where pre-licensing education comes into the picture as a means to learn about the fundamental mortgage industry principles, state and federal laws, rights, and ethics.
The NMLS requires all applicants to complete minimum qualifying education to become eligible for applying for an MLO license. In Texas, it is a mandatory requirement as well.
According to the NMLS guidelines for aspiring loan officers, every applicant must complete a minimum of 20 hours of national mortgage loan originator course to obtain a license.
In Texas, you need to complete an additional 3 hours of coursework covering state-specific laws and regulations to obtain a MLO license.
In total, your pre-licensing education curriculum will cover the following courses:
- Federal Law (3 hours)
- Ethics (3 hours)
- Non-Traditional Mortgage Lending (2 hours)
- General Electives (12 hours)
- Texas-specific laws and regulations (3 hours)
Students are free to complete the course credits as per their preferred medium of learning i.e. you can join an in-person classroom or enroll in an online course in Texas.
However, it is important that you choose an NMLS-approved education provider to complete your pre-licensing education in Texas.
This is important as only approved course providers meet the SAFE (Secure and Fair Enforcement Act) pre-licensing education requirements.
Many students often wonder whether completing pre-licensing education offers any additional benefits instead of merely a mandatory requirement to be completed.
Completing pre-licensing education will help you build a solid foundation upon which you can build a thriving long-term career.
Most importantly, the course curriculum will prepare you to take on the next challenge in your licensing journey which is passing the SAFE MLO licensing exam.
Step 3: Pass the SAFE MLO licensing test
As per the SAFE Act of 2008, it is mandatory for all applicants to take the MLO licensing test and prove their competence and eligibility by passing the exam.
In Texas, you are required to take the SAFE Mortgage Loan Officer test and you can schedule it using your NMLS identification number on the NMLS licensing website.
The test covers both state and national-specific portions and tests your knowledge of the principles of the mortgage lending industry, laws, regulations, and other general topics.
You will have to tackle 115 multiple-choice questions and you will get 190 minutes to complete the test. To pass the MLO test, you must score at least 75 percent or above.
Step 4: Submit your licensing application
If you successfully pass the SAFE MLO test, the next step is to submit your licensing application along with mandatory documents for verification and background check.
The NMLS requires all applicants to undergo a federal criminal verification and criminal history check to prove their good moral conduct and ethical background.
To complete this step, you need to submit an updated electronic copy of your fingerprint scan along with the latest credit report.
This entire process of getting your background verification and criminal history check will cost you around $50.
Step 5: Find employer sponsorship
After completing your MLO license course, passing the SAFE MLO licensing test, and clearing the NMLS background verification, it’s time to complete the final step.
As per the NMLS guidelines for newly licensed professionals, you must submit employer sponsorship details to activate your MLO license in Texas.
To do so, you need to work under the supervision of a Texas-based employer in the mortgage lending industry who would be willing to sponsor your employment.
Once you find employer sponsorship, you can submit the details on the NMLS licensing portal and wait for a few days to get the verification process completed.