Mortgage Loan Officer Licensing Getting Tougher in Texas

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For those people interested in getting a mortgage loan officer or mortgage broker license in Texas, the requirements are getting tougher....in fact they are doubling in many respects.

Effective 09/01/2007 the educational requirements for a mortgage loan officer increase from 30 hours of coursework to 60 hours.  Below is a summary of the changes for loan officer licensing:

  • License application fee increasing from $175 to $275
  • Loan officers with experience can apply for an expedited license, requires a $100 additional fee
  • Loan officers who change their name, now have 10 days from the date of the legal name change to submit a name change request to the commissioner and pay a $25 fee

One significant change applies to applicants who have prior mortgage experience. The current code states that an applicant must have one of the following:

  1. completed the 30 hour course
  2. can document 18 months experience as a mortgage loan officer.

The new requirements change this to the following:

  1. applicants requesting an exception to the 60 hour course requirement are considered applying for an "expedited license"
  2. expedited license applicants must pay an additional $100 application fee
  3. expedited license applicants must verify 18 months experience in the past 20 months
  4. applicants who submit an incomplete application will not be allowed to reapply but will be declined for the expedited process and must take the 60 hour coursework.

Another change for mortgage brokers is that unless in cases of a sole proprietorship, mortgage brokerage COMPANIES must now be approved. The company itself will now be approved with a designated approved mortgage broker, duly licensed by the state. There is a $175 processing fee and a $50 fee per branch location. This goes into effect 1/2008.

I'm very pleased with the change in licensing to include the mortgage company. Under the present rules, if a mortgage broker lose his license for violating the state rules, the company continues and in fact, the same individual often stays in an ownership and management of the company getting another individual to get a mortgage broker license in order for the company to stay compliant. This has been a loophole in the past that hopefully this new legislation can close.

As an instructor, I can tell you that when the state changed from 15 hour course requirements to 30 hour courses it took about 5 months for us to get approved course materials. So if you are looking at getting your loan officer license or mortgage broker license there will be no way to fulfill the 60 hour requirement come 9/1/07 and there may not be an approved course by the end of the year.

To read all of the changes you can go to the Texas Savings and  Mortgage Lending website at http://www.sml.state.tx.us/Licensing_Changes_80th_Leg.htm

©2007 Ken Stampe

Ken Stampe is a Mortgage Loan Originator, Mortgage Author and Mortgage Loan Officer Instructor living in Dallas, TX. Ken provided his first client a mortgage loan in 1996 and writes about home buying and mortgages to help clients make smart home mortgage loan decisions. Contact by email at Ken@KenStampe.com

What resource do SMART home buyers use?... Mortgage Calculator Bank.com

Comments (1)

Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

While there may be a lot of things wrong in this industry..... I am not sure adding hours is the answer.

But maybe it will keep some people out.

Aug 12, 2007 08:11 AM