Texas Mortgage Broker License: Requirements & Application

Quick Answer: Texas Mortgage Broker License Overview

The Texas Department of Savings and Mortgage Lending (TDSML) licenses mortgage brokers who originate loans in Texas. You must register through the Nationwide Multistate Licensing System & Registry (NMLS) before submitting a state application.

The core requirements, in sequence:

1. Create an NMLS account and obtain your unique NMLS ID.
2. Complete 20 hours of pre-licensure education, including Texas-specific content.
3. Pass the SAFE Mortgage Loan Originator (MLO) Test (national and state components).
4. Clear a criminal background check and credit review.
5. Obtain a surety bond.
6. Submit your application through NMLS with all required documentation and fees.

The primary statute governing mortgage broker licensing in Texas is the Texas Finance Code, Chapter 156 (the Mortgage Broker License Act). TDSML enforces this chapter and issues licenses to both individual mortgage brokers and the companies they operate through. Once licensed, you face annual renewal obligations, continuing education requirements, and ongoing compliance with TDSML administrative rules found at Title 7, Part 4, Texas Administrative Code.

Detailed Eligibility and Pre-Licensure Requirements in Texas

NMLS Account and Unique Identifier

Applicants must first create an account at the NMLS Consumer Access portal (nmlsconsumeraccess.org) or through the NMLS licensing portal directly. Your NMLS ID follows you across states and throughout your career. Every individual applicant and every company applying for a license needs a separate NMLS account (Texas Finance Code §156.202).

Pre-Licensure Education

Texas requires 20 hours of NMLS-approved pre-licensure education, broken down as follows:

• 3 hours of federal law and regulations
• 3 hours of ethics (including fraud, consumer protection, and fair lending)
• 2 hours of non-traditional mortgage product training
• 3 hours of Texas-specific law (this is the state elective component required by TDSML)
• 9 hours of elective mortgage-related content

Courses must be completed through an NMLS-approved education provider. You cannot take a course from a provider your employer owns or controls (NMLS Texas Component Checklist).

SAFE MLO Exam

You must pass both components of the SAFE MLO Test:

• National Component (125 questions, 190-minute time limit, 75% passing score)
• Texas State Component (if a standalone state test is required; consult TDSML for current exam structure, as Texas has periodically adjusted its state-specific testing requirements)

Exams are administered by Prometric. If you fail, there are mandatory waiting periods before retesting: 30 days after the first and second failures, 180 days after a third failure (12 U.S.C. §5105, SAFE Act).

Background Check and Criminal History

All applicants must authorize TDSML to obtain:

• FBI criminal history via fingerprinting (submitted through NMLS)
• A review of any prior regulatory or administrative actions in any state
• A credit report

Texas Finance Code §156.203 gives TDSML authority to deny a license based on felony convictions, particularly those involving fraud, dishonesty, breach of trust, or money laundering. A conviction does not automatically disqualify you, but TDSML will evaluate the nature, recency, and circumstances. Applicants must disclose all relevant information. Undisclosed items are often viewed more critically than the underlying issue.

Financial Responsibility and Creditworthiness

TDSML reviews your credit report for evidence of financial irresponsibility. Patterns of unpaid judgments, unresolved tax liens, or recent bankruptcies can delay or prevent approval. There is no published minimum credit score, but TDSML expects applicants to demonstrate they can manage financial obligations (TDSML Administrative Rules, Title 7, Part 4, Chapter 80).

Surety Bond

Texas requires mortgage broker applicants to maintain a surety bond as a condition of licensure under Texas Finance Code §156.203. Bond amounts are tied to prior-year loan origination volume — applicants without a prior-year track record post the minimum tier. Confirm the current amount with TDSML before binding coverage, as the schedule is periodically revised. The bond runs to the state for the benefit of consumers harmed by violations of the Mortgage Broker License Act, and lapse or cancellation triggers immediate license suspension.