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Residential Mortgage Loan Originator (RMLO)
Licensing Process
Overview of this Page
Basic RMLO Application Process
Texas Timeline for 2010
NMLS Mortgage Licensing Terminology
Step 1 - Register for the NMLS Account
Step 2 - Register for 20 Hrs Education (if needed)
Step 3 - Register for the NMLS National Exam
Step 4 - Register for the Texas Exam
Step 5 - Apply for your NMLS License
License Application Fees
Texas SAFE Act Guidelines
Renewing Your License for 2011
The Application Process Made Easy
To apply for the new RMLO license, you will need to meet the following basic requirements
(more details are below):
1) Enroll in the Exam Preparation Course
2) Register for an account in the NMLS Resource Center
3) Register for the National and State Tests in the NMLS Resource Center
4) Complete 20 Hrs of Pre-License Education
5) Begin filling out the MU1, MU2, MU3 and MU4 applications, as necessary
5) Pass the National Exam
6) Pass the State Exam in each state you wish to originate loans
7) Submit your application forms through the NMLS system
For Live Course & Exam Prep Dates,
click here.
For a Quick Summary of how to meet the NMLS license requirements,
click here.
Texas Timeline for 2010
| April 2 |
Application System Came Online in Texas |
| April 2 to May 31 |
Application Period New:
- Mortgage Banker RMLOs
- Contract Processors/Underwriters
- Financial Service Company Exclusive Agents
- Auxiliary Mortgage Loan Activity RMLOs (includes Non-Profits)
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| July 1 to August 31 |
Application Period for Transitioned Licenses
Currently licensed Mortgage Brokers and Loan Officers applied for transition of their licenses into the NMLS system.
AFTER AUG 31: If you did not file your application by Aug 31, your education and exam testing cannot be
credited and you will have to complete the 20 hour Pre-License Course and take the new Texas Test.
No certifications will be added by SML after Aug 31.
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November 1 to
December 31, 2010 |
Renewal Period for ALL Texas NMLS Licenses
- DON'T DELAY IN SUBMITTING THE RENEWAL FILING!!!
- Renewal must be submitted at least 15 days prior to December 31st to ensure licenisng status continues to display "Approved".
- Renewals for the calendar year 2011 DO NOT require any CE.
- CE must be taken during 2011, but the requirement for the 2012 renewal.
- Annual Report: TX SML will not place a requirement for an annual report filing for calendar year 2010 activity
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| December 31, 2010 |
All current Texas Mortgage Broker & Loan Officer Licenses Expire
- All current licensees should have applied and been approved for a license.
- Origination after December 31, 2010 without the NMLS license is considered Unlicensed Activity.
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| January 1, 2011 to February 28, 2011 |
Reinstatement Period
- Late period for renewal applications with a penalty
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NMLS Mortgage Licensing Terminology
| NMLS |
Nationwide Mortgage Licensing System |
| RMLO |
Residential Mortgage Loan Originator |
| MU1 |
Application form for the company ID |
| MU2 |
Application form for any principals of the company (not originating) |
| MU3 |
Application form for any branch locations of your company |
| MU4 |
Application form for each individual loan originator |
| Credit Hours Banking |
Education hrs completed are submitted into NMLS |
NMLS Quick Guides
Step 1 - Register for the NMLS Account
All Residential Mortgage Loan Originators (RMLO) must be sponsored by a company, therefore all companies must file
an MU1 application. Even individual brokers, contract processors, and underwriters must file a form MU1 to create a company
to house thier license.
1) Request a company account
If you work for a large company, speak with your manager about the
company records in NMLS. You will need to apply under their
company ID.
If you are the owner of your company, you will need to create an MU1 account.
Click here to begin the MU1 appliction process.
2) Next you will need to create an Individual Account.
Click on the "Log in to NMLS" button above and then select "Create an Individual Account."
Click here for the quick guide to create an account.
Step 2 - Register for 20 Hrs Education (if needed)
ALL residential mortgage loan originators must complete a minimum of 20
hours of pre-licensure education. There is a $30 fee charged by
NMLS for "Banking" of credit hours. This fee will be facilitated
through the education provider who is submitting your hours for course
credit.
Register for Our Online 20 Hour Course
If the RMLO has already satisfied 20 hours of NMLS approved education in any state
or have had education certified by another state, you are not responsible for the above.
Step 3 - Register for the NMLS National Exam
If you have already passed the National Component of the SAFE Mortgage Loan Originator Test and your passing
score is part of your RMLO record in NMLS, you do not need to take it again.
You will register and pay for the National Exam through the NMLS system after you have created your account.
Register for the exam as early as possible because exam dates are scheduled out
about two weeks or more in advance due to volume!
The exam may be taken through Pearson Vue or Prometrics Testing Centers.
The exam costs $92 and consists of 100 questions. 90 questions count
for your score and 10 questions are sample questions being tested by
NMLS.
You will have 150 minutes to complete the exam. Take
your time reading each question carefully. If you do not know the
answer, make your best educated guess and mark the question to "review"
in the testing software to be reviewed after all questions have been
completed.
Testing center tips: Bring your drivers license and
another form of ID such as a credit card with matching signatures.
You will have a locker for all personal belongings such as coats,
purses, watches, phones, calculators, etc. The testing center
will provide a calculator and scratch paper to work on.
Click here for the exam registration instructions
Step 4 - Register for the Texas Exam
As of September 1, 2010, All applicants for an SMLD or OCCC issued TX RMLO License must pass the
Texas State Test before filing Form MU4 through NMLS. (There is only one test format regardless of agency.)
Prior to the August 31st cutoff, the Texas SML certified that the RMLO had already
completed the current Texas SML Pre-licensing Mortgage Broker/Loan Officer Examination.
No more certifications are being made at this time!
The exam costs is $69 and consists of 50 questions. You will
have 120 minutes to complete the exam.
Take your time reading each question carefully. If you do not know the answer, make your best
educated guess and mark the question to "review" in the testing software to be reviewed after all questions have been completed.
Testing center tips: Bring your drivers license and another form of ID such as
a credit card with matching signatures. You will have a locker for all
personal belongings such as coats, purses, watches, phones,
calculators, etc. The testing center will provide a calculator and
scratch paper to work on.
The process to register for the State Exam is the same as the National.
Click here for the exam registration instructions
Step 5 - Apply for your NMLS License
Now you are ready to file your applications Forms MU1, MU2, MU3, and MU4!
Click here for the RMLO application process
NMLS Presentation which includes more detailed information and screen shots of the application process.
WHO NEEDS THE MU1 APPLICATION? All MU4 licenses must be sponsored under a MU1 Company Filing. "The MU1 is completed by mortgage companies
or sole proprietorships to apply for, maintain, amend, renew, and/or surrender a license."
Texas License Application Specifics
You will be filing for either the Texas - SMLD license or the Texas - OCCC license depending on which agency regulates
your business.
There are six types of licenses.
WARNING: PAY CLOSE ATTENTION AND FILE FOR THE RIGHT TYPE. NO REFUNDS ARE ISSUED IF YOU FILE FOR THE WRONG LICENSE TYPE.
1) Mortgage Banker
2) Mortgage Company (formerly known as a Broker)
3) Financial Services
4) CUSO (Credit Union Subsidiary Organization)
5) Auxiliary Loan Activities
6) Independent Contract Loan Processors and Underwriters
License Application/Renewal Costs
Top
NMLS Fees: For companies and individuals applying or renewing through the NMLS portal, the system will require
payment electronically through NMLS upon submission for processing fees of:
| MU1 |
$100 per company |
| MU2 |
Principals/Officers are at no cost to register |
| MU3 |
$20 per licensed branch location |
| MU4 |
$30 per residential mortgage loan originator license |
| National Exam |
$92 |
| Texas Exam |
$69 (Take new version if MU4 filed after to 09/01/10) |
| FBI Background Check |
$39 |
| Credit Report |
$15 |
| Pre-License Education Certification |
$15 |
| Current TX Exam Certification |
$5 |
| MU4 Changes |
$30 each time a RMLO changes company sponsorship |
The NMLS processing charges are applied on a per license per state basis.
There are no other NMLS processing fees. These processing fees pay for NMLS’
operations, including licensee system access 362 days per year, ability
to maintain, renew and run reports on your licenses, and call center
support.
Texas SMLD Fees: For companies and individuals submitting a NEW APPLICATION OR RENEWAL through NMLS, the system will require
payment electronically through NMLS upon submission for processing fees of:
| Mortgage Banker |
MU1 - $500
MU3 - No Fee
MU4 - $410 New
MU4 - $310 Renewal |
| Mortgage Company (formerly known as a Broker) |
MU1 - $175
MU3 - $50 New
MU4 - $310 |
| Financial Services |
MU1 - Varies
MU3 - N/A
MU4 - No Fee |
CUSO
Credit Union Subsidiary Organization |
MU1 - $175
MU3 - No Fee
MU4 - $310 |
| Auxiliary Loan Activities |
MU1 - No Fee
MU3 - N/A
MU4 - $50 |
Independent Contractor
Loan Processor/Underwriter |
MU1 - $175
MU3 - N/A
MU4 - $310 |
SMLD Fee Schedule for Licensing Applications
Texas SAFE Act Guidelines
Top
Background Checks
Criminal History
- All individuals acting as residential mortgage loan originators must
authorize a fingerprint background check through NMLS for the purpose
of conducting a national criminal history background check through the
Federal Bureau of Investigation when filing Form MU4 through NMLS. This
requirement applies to all individuals, regardless whether you are
currently licensed in the state or if you have previously submitted
fingerprints for licensure. NMLS will implement a comprehensive process
which includes electronic fingerprint capture with locations throughout
the state.
Credit Report
- All residential mortgage loan originators must provide authorization
to obtain a credit report through NMLS. Texas SML will review the
credit report provided through the NMLS as part of its determination of
financial responsibility for each residential mortgage loan originator.
SML has stated that they will take into account recent economic
factors when reviewing credit reports and will differentiate between
financial irresponsibility and economic hardships.
Texas does NOT have a credit score requirement.
Q&As about License Renewal for 2011
Top
Q: What is the deadline for renewing my license?
A: All MLO renewal requests should be submitted by December 15, 2010. The cutoff for renewing your license is December 31st, 2010.
Q: What happens if I do not renew my license by December 31, 2010?
A: Your license will expire which means you will no longer be able to act as a loan originator in Texas. Licenses can still be renewed until Feb 28, 2011, but they will be subject to a late fee.
Q: What are the Continuing Education (CE) requirements for the 2011 renewal?
A: No CE required for 2011 renewal period.
Q: What other requirements must be met by December 31st?
A: You need to authorize the credit report review and pass your National Exam, if you have not already done so.
Q: What is the late renewal fee for a loan originator license?
A: If you renew your LO license late, the fee is TBA which includes the NMLS $30 system fee.
Q: Who can help if I forgot my password to the NMLS?
A: If you are an individual and you know your user name, there is a “Forgot Password” option on the NMLS login screen. If you do not know your user name, you must contact the NMLS Call Center. You can reach them at (240) 386-4444.
Q: I am an inactive loan originator, must I renew my license?
A: If you wish to maintain your inactive loan originator license in 2011, you must renew with the same requirements as an active loan originator licensee. This includes meeting all the renewal requirements and submitting the renewal request via the NMLS.
Q: Who can I call for help navigating the renewal system in the NMLS?
A: The NMLS Call Center is available Monday-Friday from 8am-5pm. Their phone number is (240) 386-4444.
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