Does the state require a physical location within the state?
A mortgage broker licensee must maintain an in-state office.

Is there individual loan officer licensing?
Yes, loan officers working for brokers are individually licensed.

What are lenders, brokers and loan officers called?
The terms mortgage lender and mortgage broker are used in Texas for company licensees. Individual originators are licensed as loan officers.

Is there state reciprocity across state lines?
As of this writing there is no state reciprocity.

What is the cost of a license? Surety bond? Are there net worth requirements?
The fees schedule for initial licensing applications received by the department on or after 9/1/2007 are as follows:
For a mortgage broker there is a $375 Application Fee, $20 Recovery Fund Fee and a $39 Background Check Fee for a total of $434.
For a loan officer there is a $275 Application Fee, $20 Recovery Fund Fee and a $39 Background Check Fee for a total of $334.

Individual Licensing

Each applicant for a mortgage broker license must either establish that they have net assets of at least $25,000 or provide a surety bond in the amount of $50,000.

If a personal financial statement shows net assets of at least $25,000 without including any investment in the mortgage business, a financial statement for the business is not required. If, however, the investment in the mortgage business is needed to meet the $25,000 requirement, then financial statements for the mortgage business must be provided.

The financial requirements only apply to mortgage brokers. There is no financial requirement for a loan officer.

Also, the financial requirement relates to personal assets, not the assets of the company. If you elect to provide a bond, it must be a bond for you personally, not a bond for your company.

Company Mortgage Broker Licensing

Unless the company operates as a sole proprietorship, the company must be licensed effective 1/1/2008. The company must designate a representative that is a licensed mortgage broker and pay a processing fee of $175.

Any branch under the company mortgage broker structure must be licensed the same as an individual mortgage broker. The application must be submitted on the appropriate form with the $50 per branch processing fee. Any changes to the designated representative must be submitted to the department immediately upon change along with a $25 processing fee.

Mortgage Broker
• 36 months of loan origination experience and
  • 90 hours of Core classroom training, including 6 hours of Ethics, offered by an SML-approved provider taken within the last two years if not previously licensed as a mortgage broker or loan officer under the MBLAct or
  • 30 hours of Core classroom training, including 2 hours of Ethics, offered by an SML-approved provider taken within the last two years if not previously licensed as a mortgage broker under the MBLAct but was previously licensed as a loan officer under the MBLAct or
  • No additional hours if previously licensed as a mortgage broker under the MBLAct or
  • 18 months of loan origination experience and, at minimum, a bachelor’s degree in either finance, banking, or business administration and
    • 90 hours of Core classroom training, including 6 hours of Ethics, offered by an SML-approved provider taken within the last two years if not previously licensed as a mortgage broker or loan officer under the MBLAct, or
    • 30 hours of Core classroom training, including 2 hours of Ethics, offered by an SML-approved provider taken within the last two years if not previously licensed as a mortgage broker under the MBLAct but was previously licensed as a loan officer under the MBLAct or
    • No additional hours if previously licensed as a mortgage broker under the MBLAct or
    • Holds active Texas license as:
      • Real Estate Broker or
      • Attorney or
      • General Lines Agent (Life, Accident, Health, & HMO; or Property & Casualty); Limited Lines Agent (Multiple Lines); or Managing General Agent and
        • 90 hours of Core classroom training, including 6 hours of Ethics, offered by an SML-approved provider taken within the last two years if NOT previously licensed as a mortgage broker or loan officer under the MBLAct or
        • 30 hours of Core classroom training, including 2 hours of Ethics, offered by an SML-approved provider taken within the last two years if NOT previously licensed as a mortgage broker under the MBLAct but was previously licensed as a loan officer under the MBLAct or
        • No additional hours if previously licensed as a mortgage broker under the MBLAct.

Loan Officer

• 60 hours of Core classroom training, including 4 hours of Ethics, offered by an SML-approved provider, taken within the last two years or
• 18 or more months of loan origination experience and
  • 30 hours of Core classroom training, including 2 hours of Ethics, offered by an SML-approved provider taken within the last two years; or
  • Holds active Texas license as:
    • Real Estate Broker or
    • Attorney or
    • General Lines Agent (Life, Accident, Health, & HMO; or Property & Casualty); Limited Lines Agent (Multiple Lines); or Managing General Agent and
  • 30 hours of Core classroom training, including 2 hours of Ethics, offered by an SML-approved provider taken within the last two years.

Annual percentage rate (APR) test

The APR at the time of loan closing exceeds by more than 8 percentage points for first-lien mortgage loans and 10 percentage points for secondary-lien mortgage loans the yield on Treasury securities having comparable periods of maturity as of the 15th day of the month immediately preceding the month in which the loan application is received by the lender.

Points and fees test

The total points and fees payable at or before loan closing will exceed the greater of 8 percent or a dollar amount as specified ($510 in 2005).