One of the most desired jobs within the real estate field is mortgage loan originator (MLO). With excellent job security, benefits, a flexible work schedule, and the ability to meet with lots of people, that’s no surprise.
Texas has a booming real estate market, so if you’re looking for an MLO license, this is the right place to learn how.
6 Steps to Becoming an MLO in Texas
Here are the six steps you need to follow to become a professional mortgage loan originator in Texas.
1. Apply for Your NMLS Account and ID Number
Before starting your MLO training, you must apply for a Nationwide Multistate Licensing System (NMLS) account. Once your account is approved, the NMLS will assign you an ID number. Your ID number is associated with your name and background, and you’ll use it when applying for courses, the licensing exam, and future jobs.
2. Complete Your NMLS Pre-License Education
The state of Texas requires you to take at least a 20-hour pre-license training course on mortgage laws and procedures due to the SAFE Act. Those interested in obtaining their license through the Texas Office of Consumer Credit Commissioner (TX-OCCC) or The Texas Department of Savings and Mortgage Lending (TX-SML) should take additional courses because their licenses are more extensive.
3. Pass the NMLS Mortgage Licensing Exam
You’ve completed your course, but are you ready to take the exam? Log into your NMLS account online and look for available exams near you. Give yourself some time to study because the test has 115 scored questions, takes 190 minutes, costs $110, and requires at least a 75% score. You can retake the test every 30 days.
4. Complete Background Checks and Pay Fees
Both state and federal MLOs must have a criminal background check before being certified. Fees vary depending on the certification for which you’re applying. A background check for an NMLS license is $30. After filing a notice for a criminal background check through the NMLS website, you’ll need to have your fingerprint scanned.
5. Apply for Your Texas Mortgage License
Once you receive notice that you’ve passed the exam, you can apply for the mortgage license online through the NMLS website. Leave this step to your future employer if you’ve already lined up a job.
6. Associate Your NMLS Account with Your Employer
Once you get your license and first job, it’s time to associate your account with your employer. Follow these steps:
- Go to the NMLS website
- Click on the filing tab
- Click the Company Access link
- Click the Add button
- Search for your employer
- Check the box with the company name
- Hit save
Should I Become a Mortgage Loan Originator?
Roughly half the people who take the NMLS SAFE MLO exam in Texas pass it. Invest the time to study and be serious when taking courses. The extra time and effort you put in will be well-spent.
It’s ultimately up to you whether you want to be an MLO. It’s undoubtedly a safe career choice, especially in Texas, where the real estate industry is growing.