Who Needs a Mortgage Loan Originator License in Texas?
A mortgage loan originator (MLO) license is required in Texas for any individual who provides or offers to provide the following services:
- Negotiate terms for residential mortgage loans on behalf of a borrower or lender
- Accept applications for mortgage loans
What is a Texas-SML License?
The TX-SML (Texas Department of Savings and Mortgage Lending) MLO license focuses mostly on primary residential mortgage loans. It requires 23 total hours of pre-license education (PE) which includes three hours of state-specific course material.
There are more prerequisites for this license than the TX-OCCC one. View them all here.
How Do I Get a Texas-SML License?
Becoming an MLO in Texas is a multi-step but relatively simple process! Here's a breakdown:
- Complete at least 23 hours of pre-licensure education (PE) within three (3) years of the initial application submission.
- Schedule and pass an MLO license test, also known as the SAFE (Secure and Fair Enforcement for Mortgage Licensing) Test.
- Submit an Individual Form (MU4) through NMLS (Nationwide Multistate Licensing System & Registry).
- Undergo a criminal background check by submitting your fingerprints.
- Authorize a credit report
- Answer background disclosure questions
- Provide employment and residential history details
- Give detailed credit report explanations
- Provide proof of your legal name, legal status, and authorization to work in the US
- For an "expedited review," you can upload proof of being an active military member, a military veteran, or an active military member's spouse
- Get an employer sponsorship and give your current or future employer NMLS access.
How Long Does It Take to Get Your Texas-SML License?
To comply with the federal Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act, you need at least 23 hours pre-license education (PE) before applying for a Texas-SML license. These 23 hours must include three hours of state-specific course content.
After you finish your PE, getting licensed depends on how quickly you complete the application process (see above) and the state’s application processing time.
Do the Texas-SML Pre-License Courses Have a Completion Deadline?
Students have a maximum of 14 days to complete the 20-hour national MLO course upon starting. If the course is not completed within 14 days, we must reset the course and the student needs to start over.
NMLS requires that the assessments included in this course be graded by an AYPO instructor before a student can continue.
Unlike the national course, the 3-hour TX-SML SAFE state-specific course material is self-paced and has no completion deadline.
Can Texas MLO Pre-License Education Expire?
Yes! Pre-license education (PE) can expire after three (3) years and must be retaken if:
- The student doesn't become a licensed MLO within three years of completing the PE
- An MLO doesn't renew their license within three years of it expiring
Does the Texas-SML License Require State-Specific Education?
Yes! The TX-SML license requires three hours of Texas-specific pre-license education in addition to the 20-hour requirement, bringing the total to 23 hours.
Our Texas-SML MLO Pre-License Package fulfills all pre-license requirements and includes helpful resources like practice quizzes.
Will AYPO Report My Course Completion to NMLS?
Yes! We report your successful course completion to NMLS for free.