How to Become a Loan Originator in Texas

The Texas Department of Savings and Mortgage Lending and the Office of Consumer Credit Commissioner regulate the lending industry within the state. Residential mortgage loan originators are required to register their businesses and obtain a loan origination license before legally transacting business in Texas. Federally regulated banks and credit unions are required to comply with the federal registration process, instead of following the Texas loan origination process. To become a loan originator, companies must register with the Texas Department of Savings and Mortgage Lending and obtain a license through the Texas Office of Consumer Credit Commissioner.

Things You'll Need

• NMLS application and membership
• Payment for NMLS application
• Texas jurisdiction-specific application
• Employer verification application

Instructions

1. Create an individual Nationwide Mortgage Licensing System (NMLS) account at "mortgage.nationwidelicensingsystem.org." To help federal and state governments protect consumers against deceptive lending practices in the residential real estate industry, the Financial Industry Regulatory Authority created the NMLS system in 2004 to help streamline the registration process for lenders on a nationwide level and to regulate the national lending industry. To register, you must first create an account.

2. Register your loan origination company with the NMLS. Texas law requires that all mortgage originators, brokers and lenders register with the NMLS unless regulated differently by federal law.

3. Apply for an Office of Consumer Credit Commissioner Residential Mortgage Loan Originator License by first applying for membership to the NMLS. Once you obtain an NMLS membership, you can proceed with licensing. For 2011, you need to pay a $355 processing fee and an additional credit report and criminal background check fee to NMLS.

4. Apply for a Mortgage Loan Originator License with the Texas Office of Consumer Credit Commissioner. The office requires that all individuals who transact business within the state, accept residential mortgage applications and accept or expect compensation first obtain a license.

5. Download the Employment Verification Form from the Texas Office of Consumer Credit Commissioner's website.

6. Ask your employer to complete, date and sign the Employment Verification Form. Texas law requires that your employer register for licensure or hold a Texas Regulated or Property Tax Loan License.

7. Download the Texas New Application Jurisdiction-Specific Requirements Form.

8. Provide your NMLS identification number on the second page of the application form.

9. Print your legal name on the second page of the application form.

10. Mail your NMLS application and jurisdiction-specific application to the Texas Office of Consumer Credit Commissioner.

Tips & Warnings

• Mail your jurisdiction-specific application to the Texas Office of Consumer Credit Commissioner within five days of submitting your NMLS application.

• You cannot obtain a Texas Mortgage Loan Originator License with the Office of Consumer Credit Commissioner unless you complete 20 hours of specialized courses approved by the NMLS. You must also pass the SAFE Test.

References

• Texas Office of Consumer Credit Commissioner: New Application Jurisdiction-Specific Requirements
• Texas Department of Savings and Mortgage Lending: Residential Mortgage Loan Origination: Licensing and Registration
• Nationwide Mortgage Licensing System: Texas Agencies
• Texas Office of Consumer Credit Commissioner: State Licensing Requirements

Resources

• Texas Office of Consumer Credit Commissioner: Employment Verification Form