What are the main types of mortgage loans?
The NMLS test content outline groups them into loan products and program types. Loan products include fixed-rate mortgages, adjustable-rate mortgages (ARMs), home equity lines of credit (HELOCs), reverse mortgages, construction loans, and interest-only loans. Program types include conventional and conforming loans, FHA, VA, USDA, jumbo, Alt-A, and subprime mortgages.
Texas recognizes several categories, and the licensing agency depends on the loan type. Primary residential mortgage loans fall under the Texas Department of Savings and Mortgage Lending, while secondary mortgage loans, home-equity loans, residential property tax loans, and manufactured housing loans fall under the Office of Consumer Credit Commissioner. Texas also regulates wrap mortgage loans, and it treats business or commercial purpose loans, such as purchase-and-rehab or rental acquisition financing, as outside the residential mortgage loan definition.
Sources: Texas OCCC: Residential Mortgage Loan Originators; Texas SML: Mortgage origination FAQs.