How to Become a Loan Officer In Texas

Being a loan office in Texas is an interesting job. You are essentially the middle man between protecting a bank’s interest while also approving loans to help Texans realize their dreams of potentially getting the house they want. It’s also commonly referred to as a Mortgage Loan Originator so no need to be confused about what the difference is. They are one and the same.

While being a loan officer has its perks it does take a few steps to get there. Sometimes this can be very state to state so it’s worth checking out exactly how to become a loan office in Texas here!

Let’s get to it.

The Steps To Becoming a Loan Officer In Texas

Becoming a loan officer in Texas means reviewing a lot of credit scores and financial portfolios. To have this level of personal information you need to go through a series of steps such as a background check. The wrong person in this position could do a lot of damage which is why the application process is taken quite seriously.

In an overview you will need to:

Request an NMLS account
Complete Pre-License education
Pass the NMLS exam
Apply for the NMLS license
Undergo background checks, credit checks, pay fees
Get a job

Each of these categories is worth breaking down in extensive detail because you simply must go through them in that order.

Step 1: Get Your NMSL Account

The Nationwide Multi-State Licensing System and Registry is an organization that every loan office in all 50 states needs to go through. This is not original to Texas. This is the company that will process your Mortgage Loan Officer request through the entire process. Luckily this is one of the easier steps of the process and doesn’t take longer than 10 minutes.

To do this head to the NMLS portal where you will create a new account. You’ll have a few options for which account you’d like to create. Choose individual. Now all you will need to do is complete the required information to submit your application.

Step 2: Complete All NMLS Pre-License Education

Once you are approved for having an NMLS account you’ll need to start the pre-licensing education required to take the exam. NMLS requires Texas and all states to complete 20 hours of pre-licensing S.A.F.E. course.

There are also additional education requirements dependent on the niche office loan you classify as. Here are some overviews.

NMSL S.A.F.E Program – Required nationwide this is the 20-hour course that goes over the practices and legal responsibilities of being a loan officer.
TX-OCCC – This is training for those who regulate non-dispensary lenders in the state of Texas.
TX-SML – This training is for those who take residential mortgage loan applications under Chapter 156 of Chapter 157.

Making sure that you get all the Texas specified training dependent on the type of job you are going for is crucial early on.

Step 3: Take the NMLS Exam

Now is the fun part of becoming a Texas loan officer. After completing all of your education that is required for the specific loan officer you are trying to be, you need to schedule an appointment to take the exam.

The exam you need to register for is the National Test Component with Uniform State Consent. You can register for this through your account portal and it will cost you $110.

Eventually, you will grant access for companies to look at your results upon hiring you.

National Test Component

The first part of the exam is going to test you on the S.A.F.E course you took. This is the National Test Component for MLO and will ask you 120 questions but only score 115 of them. You’ll have 190 minutes to complete this part of the exam.

Uniformed State Consent

This part of the exam covers a variety of subjects such as your responsibilities and limitations within regulatory authority. You also will be tested on definitions and document jargon an MLO must know. Among other knowledge such as licensing, law, and compliance.

Step 4: Apply for Your NMLS License

If you have passed the exam you can take a deep breath because it’s a little smoother sailing from here. Keep in mind that if you are running for a specific MLO license there may be additional testing to take. Otherwise, you can do the following to apply!

Head on over to your NMLS account and select filing on the top

You’ll want to select an individual and “request new”

Pay the fees on the next page (if you work with a mortgage company already they may reimburse you)

Select “add to” and “Texas Mortgage Loan Officer”

You’ll need to ensure that all the information on the next page is correct as any errors could affect your hiring process or the next steps.

Submit your application.

While you submit your application the next steps will require you to ensure you’re in good standing.

Step 5: Undergo Background Checks, Credit Checks, and Pay Fees

Part of the S.A.F.E. course and system is to ensure that the loan officers in the United States are clear of any fraud or limit future fraud. There is a running list of things you will have to provide in order to be accepted.

Here is the list:

Full background check
Full credit check
Fingerprints
Pay all fees associated with basic and niche licensing

After all of this is done and uploaded to your NMLS account for employers to see you are good to be approved.

Step 7: Get Hired!

Now that you are approved companies who are also registered with NMSL can review everything when you grant access. Start building your portfolio and move up the ladder by building experience. You are set to become a loan officer in Texas.

Why Become a Loan Officer In Texas?

Mortgage loan officers have some of the best perks across all industries. While you have to go through several licensing requirements the job offers competitive pay with tons of benefits when working under a company. This is because it is not only base pay but you also get a commission for your deals that go through.

All companies will likely provide medical, dental, life insurance, and retirement matching. Bigger companies will offer even better benefits such as gym memberships, extra cation time, and other great perks.

The other reason why becoming a mortgage loan officer in Texas is so appealing is that it doesn’t take a long time to get into the industry. Most people find themselves completing the process in 45 days. After that, you can work as a full-time or part-time MLO. We often see this title paired with real-estate agents as it becomes a double threat or extra tool in your belt. Both jobs are essential to the mortgage housing industry!

Do I Need A Degree to be a Texas Loan Officer?

One of the most appealing parts of becoming a mortgage loan officer is that you do not need a bachelor’s degree. You do however have to meet some other requirements. This includes having graduated high school or obtained a GED and being at least 18-years-old. The rest of the requirements are in all the steps we provided above.

When it comes to studying for the exam most people have questions about what kind of math knowledge will be on the test. It’s confirmed that basic logic and basic math learned in high school is on the test but no college-level course math is needed.

Getting Started as an MLO

Becoming a Texas loan officer can feel intimating when you first start the process. Once you start you will realize that it is a pretty straightforward process. Most of the steps will involve you applying for an NMLS account and giving current information on your history and records to ensure you are a good citizen.

You will also need to take 20-hours minimum of education training and other courses that are required for specific state licensing. If you have any confusion about this someone at the NMLS can point out what your requirements are based on your job goals. The exam is over three hours and only a passing score will allow you to submit your official mortgage loan office application

Once you have passed all you need to get started is to upload background checks, fingerprints, credit reports, and your fees to ensure you are in good standing. Not long after you will be approved and can grant any company you want access to your records so you can get hired!

How To Become a Loan Officer In Texas