Texas MLO courses, 100% online

Yes. Texas requires 23 hours of NMLS-approved pre-licensing education, made up of the 20-hour national SAFE course (3 hours federal law, 3 hours ethics, 2 hours non-traditional lending, and 12 hours of electives) plus 3 hours of Texas law, and NMLS-approved providers offer this coursework in online formats. As long as the provider is NMLS-approved, the education counts toward your application, which you file through NMLS. The hours must be completed within the 3 years before your application date.

Yes. All new applications, renewals, and changes for Texas mortgage companies and individuals must be submitted online through NMLS. A person establishing a brokerage files the company application through NMLS, and any loan originators the company sponsors file their individual licenses there as well.

Yes. The required pre-licensing education, 23 hours through the Department of Savings and Mortgage Lending (20 national hours plus 3 hours of Texas law), is available online from NMLS-approved providers. You can complete the coursework at your own pace, and many applicants finish within a few days to a few weeks. The education must be completed within the 3 years before you apply.

Yes. All new applications, renewals, and changes for Texas mortgage licenses must be submitted online through NMLS, the Nationwide Multistate Licensing System. Neither the Texas Department of Savings and Mortgage Lending nor the Office of Consumer Credit Commissioner issues paper licenses, so your NMLS record is the license. Fingerprints and the credit report authorization are also submitted through the system, and fees are paid there as well.

If you work as a loan processor or underwriter as an independent contractor rather than a W-2 employee, you must be licensed as a residential mortgage loan originator in Texas under Finance Code Section 180.051(b). W-2 processor and underwriter employees of a licensed company are exempt. Under the state rules, everyone working for an independent loan processor/underwriter company is treated as an independent contractor and must hold the license.

No. A college degree is not among the Texas licensing requirements for a mortgage loan originator, which are pre-licensing education, a passing test score, a background and credit check, and company sponsorship. However, Texas Workforce Commission data based on O*NET shows that most loan officers hold a bachelor's degree.

No. Both Texas licensing agencies will issue a license without employer sponsorship; the Department of Savings and Mortgage Lending issues an "Approved-Inactive" license once you complete all other requirements. However, you cannot originate loans until a licensed company's sponsorship request is reviewed and approved in NMLS, so sponsorship is needed to work, not to get licensed.

No minimum credit score is required, but the Texas Department of Savings and Mortgage Lending runs a credit history background check and judges financial responsibility on the overall picture, not the score alone. Judgments, back child support, tax liens, charge-offs, collection accounts, and foreclosures or short sales with a deficiency can lead to denial. Judgments solely from medical expenses and delinquent student-loan accounts are not considered. A conditional license is possible if a payment plan is in place and you are making timely payments.

Call the NMLS Resource Center at 1-855-665-7123 for help with your NMLS account and filings. For Texas-specific questions, the Department of Savings and Mortgage Lending licensing section can be reached at (512) 475-1350 or nmls@sml.texas.gov. For OCCC-issued licenses, call 512-936-7605 or email licensing@occc.texas.gov.

Texas licenses rather than certifies loan originators. To become a Residential Mortgage Loan Originator, you must complete 23 hours of NMLS-approved pre-licensing education (including 3 hours of Texas law on the SML path), pass the SAFE MLO National Test Component, and submit your application through NMLS. The state also runs a credit report and an FBI background check, and you must be sponsored by a licensed company.