These are major steps involved in how to become a mortgage loan officer in Texas: formal education, state licensing, and on the job training. This guide expands on each step and provides the valuable resources that would help you advance through the process in the most efficient way. The requirements and recommendations allow you to begin a promising career helping your clients pursue homeownership.
1. Educational Requirements
- High School Diploma or GED: The minimum educational requirement is a high school diploma or equivalent for others.
- Higher Education (Optional but Beneficial): While not mandatory, it is advisable to get a degree in finance, business, economics, or any related field if you can to make you a much better contender in the job market.
2. Pre-Licensing Education
- Complete Required Mortgage Loan Officer Courses: To get a mortgage loan officer license in Texas, one needs to take and pass a 20 hour pre-licensing NMLS approved course from a course provider. This includes:
- 3 hours of federal law and regulations
- 3 hours of ethics, including instruction on fraud, consumer protection, and fair lending issues
- 2 hours of training related to lending standards for the nontraditional mortgage product marketplace
- 12 hours of elective courses
3. Pass the SAFE MLO Test
- SAFE MLO Test: It is mandatory that you take and pass the SAFE (Secure and Fair Enforcement for Mortgage Licensing Act) which is a Mortgage Loan Originator Test consisting of a national test and a state component specific to Texas.
- National Component: Concerns federal mortgage rules, basic information about mortgage, activities related to mortgage loan origination and ethics
- Texas State Component: Separate files each of which is divided by state to provide information on the various mortgage laws and regulations in each state.
4. Obtain a Unique Identifier
- NMLS Unique Identifier: How to become a Mortgage Loan Officer in Texas? One of the most essential requirements is the NMLS Number. This means that applicants must go through NMLS registration to receive a specific identification number. This identifier is used to monitor your licensing and compliance status. In addition, Mortgage firms rely on NMLS to check the eligibles who apply to be their representatives or more so the clients, to confirm they are legally compliant.
5. Submit a License Application
- Application Submission: The MLO application should be submitted within the NMLS. The application will include:
- Personal information
- Employment history
- Criminal background check
- Credit report
- Fingerprints
→ Learn more: mortgage loan originator license cost
6. Background Checks
- Criminal Background Check: Applicants are required to go through a criminal background check as one of the licensing requirements.
- Credit Check: A report containing credit history will be looked at to determine one’s responsibility and credit worthiness of the applicant.
7. Bonding and Insurance
- Surety Bond: Mortgage loan officers are also required to be bonded according to the laws prevailing in Texas. The size of the bond can also depend on your employer and the amount of loans you originate, therefore, many loans you make means a higher bond for you.
- Errors and Omissions Insurance: The employer may require that you take errors and omissions insurance in situations where the employer is sued for negligence or mistakes in loan processing.
8. Continuing Education
- Annual Continuing Education: Generally, in order to keep your license, you are required to take 8 hours of continuing education per year. This includes:
- 3 hours of federal law and regulations
- 2 hours of ethics
- 2 hours of training related to lending standards for the nontraditional mortgage product marketplace
- 1 hour of elective courses
9. Gain Experience
- Entry-Level Positions: It is suggested that one begins at the lower level of the career ladder by working at organizations as a loan processor or a loan officer.
- Networking: It is important to join professional associations, go to conferences and meetings, and get acquainted with other specialists in the sphere of mortgage loan officers to get all the necessary experience.
10. Find Employment
- Job Search: There are many types of financial institutions to select from, focus on banks, credit unions, mortgage firms and other related firms. Make sure that your resume and cover letter contain the details of your education, license, and working experience as much as possible in the firm.
- Interview Preparation: Before the interview one should have the following things done: briefing on information pertaining the company the appointment is going to be conducted with, and the Tour of the Company’s products and or services, and testing on some of the most likely questions that the Mortgage Loan Officer is likely to be asked.
→ Learn more: how much commission does a mortgage loan officer make
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Benefits of Joining Loan Factory
If you join Loan Factory as a mortgage loan originator, you can enjoy the following benefits:
- Access to the best technology platform in the industry.
- Support from a loan officer assistant to streamline your workflow.
- Marketing and underwriting support to enhance your business operations.
- No monthly fees, desk fees, or junk fees.
- No minimum production fee.
- 100% commission minus a flat fee of $595.
- Only a $500 processing fee.
- Commission options (1099 or W2) of up to 250 bps.
By joining Loan Factory, you can establish a strong partnership and leverage our resources to enhance your success as a mortgage loan originator.
Conclusion
It is essential to complete mandatory education, get a license and gain more experience in Mortgage in order to become a Mortgage Loan Officer in Texas.
Come join our dynamic team and start your new career path today! We offer training, tech-forward systems, teamwork and plenty more!
Visit www.loanfactory.com or call 714-444-9999 to learn more. Join Loan Factory today and help clients achieve their dream of homeownership.
