How to Get a Texas Mortgage Broker License
To become a mortgage broker in Texas you need to get a mortgage broker license. There are two entities that regulate mortgage brokers: the Department of Savings and Mortgage Lending and the Office of the Consumer Credit Commissioner (OCCC). Both have various requirements brokers must meet to get a license.
In this guide, we’ll break down the licensing requirements and give you a step-by-step process for getting your Texas mortgage broker license.
Here’s what we’ll cover:
- Who needs a mortgage broker license in Texas?
- Process for getting a Texas mortgage broker license
- Texas mortgage broker license frequently asked questions
- Get bonded online with EZ Surety Bonds
Who needs a mortgage broker license in Texas?
Before applying for a mortgage license, you want to understand what type of license you need. There are several licenses available for mortgage-related professionals, each permitting the licensee to perform a different type of work.
Both the Texas SML and OCCC use the Nationwide Mortgage Licensing System (NMLS) to handle licensing for mortgaging activities. Below are a few of the common types of mortgage licenses in Texas:
- Mortgage Loan Originator (MLO) License: This license lets individuals engage in mortgage loan origination activities including negotiating the terms (brokering) a residential mortgage.
- Mortgage Banker License: This license lets companies accept an application for a residential mortgage loan or make a residential mortgage loan.
- Mortgage Company License: This license lets companies engage in the business of residential mortgage loan origination for real property located in Texas.
- Residential Mortgage Loan Servicer Registration: This license lets individuals and businesses receive scheduled payments from a borrower under the terms of a residential mortgage loan.
Process for getting a Texas mortgage broker license
Step 1: Register your business
Before applying through the NMLS, you must register your business with the Texas Secretary of State. You can complete the registration online using the SOSDirect web portal.
Step 2: Complete the pre-licensing training
The next step is to complete the pre-licensure education requirements. Texas mortgage brokers are required to complete 23 hours of NMLS approved courses. After you complete the training you must complete a knowledge test verifying that you understand the concepts.
Step 3: Get a surety bond
Mortgage brokers are required to maintain a minimum net worth of $25,000. If you do not meet this requirement, you can post a Texas surety bond in its place. The bonds serve as a financial guarantee that the licensed broker will comply with all license regulations.
If you need to post a Texas mortgage broker bond, the required bond amount is $50,000. You only need to pay a small percentage of this total amount as a premium, typically between 1% and 5%. When the surety company issues your bond they will determine your premium based on your experience, credit history, and financial standing.
Step 4: Submit the license application to the NMLS
After you have met all the requirements, you are ready to complete the mortgage loan originator license application. You can find the application checklist on the NMLS website. You will have to provide the following documents when submitting your application:
- Test results from pre-licensure exam
- Credit report
- Employment history
- Surety bond form (if applicable)
- Certificate of Authority issued by the Secretary of State
You will need to pay the following fees when submitting your mortgage broker license application:
- $30 NMLS initial processing fee
- $45 License/registration fee
- $15 credit report fee
- $36.25 FBI background check fee
Once you have gathered all the necessary material, you can mail the application packet to the Texas SML at the following address:
Department of Savings and Mortgage Lending
Division of Licensing
2601 North Lamar Boulevard, Suite 201
Austin, Texas 78705-4207
Texas mortgage broker license frequently asked questions
How much does it cost to get a mortgage broker license in Texas?
Texas mortgage brokers must pay $126.25 in fees to receive their license. This includes an initial processing fee, an licensing fee, a background check fee, and a credit report fee.
Who licenses mortgage brokers in Texas?
The Texas Department of Savings and Mortgage Lending (SML) and the Office of the Consumer Credit Commissioner (OCCC) handle licensing for mortgage brokers in Texas. Both institutions process applications using the Nationwide Mortgage Licensing System.
Get bonded online with EZ Surety Bonds
If you need a surety bond to replace the wealth requirement, EZ Surety can help you get bonded quickly and conveniently. Get a quote today or contact us to learn more.