The Ultimate Guide to Renewing Texas MLO License in 2024
Texas is the land of opportunity and growth and the state is a beacon for the steadily growing economy and improving job prospects.
Thanks to the strong demand for real estate, the Lone Star state is home to a growing number of mortgage loan officers.
If you are an aspiring MLO, now is a good time to pursue this stable and thriving career path with numerous opportunities for growth and earnings.
However, if you are a mortgage loan officer in Texas, then you must keep in account an important aspect related to continuing your career known as license renewal.
It is mandatory for all licensees to periodically renew their MLO license in Texas and avoid getting their license revoked or penalized by the state authority.
This requires all active license holders to navigate the post-licensing educational, verification, and compliance requirements.
As a mortgage loan officer, it is critical to maintain your licensure and keep it up to date in order to be legally able to practice your profession.
Without an updated, renewed MLO license, your prospects of building a thriving career will be limited and restricted.
If you are new to the license renewal process or simply want a refresher because of a looming deadline, this article will cover all the important aspects for you.
You will learn about the MLO license renewal requirements in Texas along with the nitty-gritty of the renewal process so you can prepare yourself better and avoid any unpleasant surprises.
Understanding the NMLS License Renewal
Before we discuss how to renew your mortgage originator license in Texas, let us give you a brief overview of the licensing authority and regulatory body.
The NMLS (Nationwide Multistate Licensing System) is the largest and most centralized database for all financial institutions, professionals, agencies, and entities in the country.
It serves as the official authority and system for regulating the licensing and registration of individuals and companies.
The NMLS also keeps a record of the transactions, depositories, and details of financial and non-banking entities and professionals.
According to the SAFE (Secure and Fair Enforcement) Act for mortgage licensing, all licensed MLOs (Mortgage Loan Officers/Originators) are required to continually update and renew their licenses.
The SAFE Act is applicable to all active mortgage loan originators/officers working with or under a licensed and regulated state or federal agency or institution.
This act requires all NMLS-listed licensed professionals and firms to complete additional education or ‘continuing education’ for license renewal typically after every two or three years.
The reason why NMLS MLO renewal is important is because the SAFE Act requires all licensed loan officers to keep their knowledge updated and their skills relevant.
Since the purpose of the SAFE Act is to protect the rights and interests of consumers, it expects all mortgage loan officers and brokers to stay current with their knowledge of the laws, regulations, and guidelines.
Texas MLO License Renewal Requirements
If you want to renew your mortgage loan originator license in Texas, you have to undergo a step-by-step process that is essential for ensuring a seamless renewal.
Getting your license renewed requires gathering the required information and understanding the prerequisites clearly.
While the process might seem confusing, especially if you are renewing your MLO license for the first time, it is actually straightforward.
To help you get started, we have outlined the key steps below in detail.
Step 1: Prepare for License Renewal
For newly licensed MLOs and companies, the NMLS has formulated an official license renewal handbook which can guide you through the steps.
To prepare yourself for the license renewal process, you can refer to the handbook for individuals and gain information on the best practices listed by the NMLS.
The NMLS license renewal handbook can be downloaded by visiting the official website of the NMLS or by calling an NMLS resource center in Texas.
You should also determine the date of your license renewal by checking the same in your NMLS account. This will help you prepare appropriately for the next set of steps.
Step 2: Update your NMLS records
Since the purpose of MLO license renewal is to keep your skills and knowledge updated, it is important that you have also verified your NMLS account information.
Keeping old, obsolete information and details in your NMLS account might prove to be a hindrance.
To avoid this, you should log into your NMLS account with your credentials and double-check whether the information associated with your NMLS ID is accurate or not.
If you see the need to make any amendments to your NMLS records such as changing your residence, or your name or making any additional disclosures, you can do so on the NMLS resource center on the website.
By amending the MU4 form for individuals, you can easily attest, save, and update your changes online.
Step 3: Complete NMLS continuing education
As per the NMLS guidelines, all licensed mortgage loan officers in Texas must complete additional education to become eligible for renewing their MLO license.
According to the SAFE Act 2008, if you hold an active mortgage loan license in Texas, you must complete 8 hours of NMLS-approved continuing education.
Typically, the total number of course hours and course topics are accrued by the state.
In Texas, note that your continuing education coursework must include the following:
- Federal Law (3 hours)
- Non-Traditional Mortgage Lending (2 hours)
- Ethics and Consumer Protection (2 hours)
- Electives or State-specific courses (1 hour)
However, it is recommended to check with the local authority for up-to-date and accurate information related to continuing education.
Note that you can complete CE in Texas either by joining a real estate classroom course or enrolling in an online CE course in a self-study format.
As long as your education provider of choice is approved by the NMLS, you are good to go.
All licensed professionals are responsible for ensuring that they are able to complete the
additional education on a timely basis in their current license renewal cycle.
When it comes to the cost of CE for license renewal, there are many different course packages and plans to choose from.
Among various educators, you can choose the most suitable continuing education plan for completing your coursework.
Generally, the costs vary between $100 to $250 depending on the course provider, type of learning plan, content delivery medium, and overall reputation of the college or course.
However, many licensed MLOs often opt for online, virtual NMLS continuing education in Texas as it is more flexible and affordable in comparison to classroom-based learning.
After you have successfully completed 8 hours of continuing education, you must report the completion to the NMLS.
To do this, you need to log into your NMLS account with your credentials and send your course credits to store them electronically.
Step 4: Submit your license renewal application
After completing the above steps, you can proceed to submit your MLO license renewal application by updating your NMLS record online.
Make sure you verify all the details carefully including your address, contact information, proof of continuing education, and any other relevant info.
Now it’s only about waiting for the NMLS to process your application and renew your license.
If all the requirements and documents are in order, the NMLS will send a notification for successful renewal.
What is the deadline for renewing an MLO license in Texas?
The official deadline for renewing your mortgage license in Texas is December 31st every year and the new license cycle begins on January 1st every year.
This deadline is applicable for all MLOs in Texas irrespective of where you are in the state.
The NMLS recommends all licensees send in their paperwork and complete their documentation by December 10th for seamless approval and renewal.
Note that if you miss the license renewal deadline, your license might risk getting canceled or revoked as your NMLS account will be deactivated.
Although your employer can submit the account reactivation request on your behalf, it is the decision of the NMLS to decide the next steps.
In some cases, the department might ask a mortgage loan officer to pay penalties and late charges to renew their license.
However, in severe cases, the department might even ask you to complete your pre-licensing education and reapply for an NMLS MLO license all over again.
Hence, it is strongly recommended that you plan and fulfill the NMLS licensing requirements before time to avoid any unwanted consequences.
Tips to renew your Texas MLO license smoothly
The purpose of renewing your MLO license is to ensure that you are maintaining compliance with the state laws and NMLS guidelines.
The SAFE Act has made it mandatory for all licensees to complete continuing education.
It is important to acquire the necessary knowledge related to industry laws, ethics, consumer rights protection, NMLS regulations, and other mortgage lending guidelines.
To ensure you are prompt and proactive in renewing your MLO license, here are some tips.
- Start your preparation early by gathering all the required documents before your license renewal deadline. Make a checklist of all the steps and keep yourself abreast with the requirements.
- Choose a reputed and reliable CE course provider to ensure you are well-equipped with the required knowledge and updated courses. Learning from a professional and NMLS-approved educator is mandatory and it will also aid your preparation.
- Pay attention to detail to all the changes and updates involved in the license renewal process. This includes any changes related to your personal or professional information.
- Keep copies of your documentation and records which you might need to resurface and submit to complete your renewal application. It helps to have important documents handy to avoid any delays in the process.
By following the above tips and staying proactive, you can ensure a smooth and seamless license renewal.
Benefits of Renewing your MLO license
Did you know that renewing your MLO license is mandatory according to the SAFE Act, 2008 and if a license is not renewed on time, it stands getting canceled or revoked?
There are additional benefits of MLO license renewal as well including;
- Your knowledge and understanding of the mortgage industry rules, regulations, and industry guidelines remain up to date.
- You will gain additional skills by completing continuing education courses which will make you current and relevant in a competitive industry.
- Your mortgage loan officer license will remain updated and renewed and you will be legally allowed to assist individuals and companies in securing mortgage financing.
Clearly, renewing your NMLS license is advantageous if you wish to build a thriving and successful career in Texas.