An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain is considered a RMLO.
In Texas, there are two (2) agencies who issue Mortgage Loan Originator licenses
Which one of the above you should apply with depends on the types of loans you will be originating.
For primary residential loans, please refer to the Texas Department of Savings & Mortgage Lending website: www.sml.texas.gov. If you are licensed with TX-SML, you may also be able to originate secondary and home-equity loans.
Though most RMLO licenses are issued by the TX-SML, you are required to obtain a license from the Office of Consumer Credit Commissioner If you originate the following types of loans:
- secondary loans (unless you are licensed by TX-SML)
- home-equity loans (unless you are licensed by TX-SML)
- residential property tax loans, or
- manufactured housing loans
Employees of companies that originate mortgage loans are also required to obtain a license from the Office of Consumer Credit Commissioner, AND register in the National Mortgage Licensing System- NMLS
To obtain a license from the Office of Consumer Credit Commissioner, you must apply through NMLS.
Entities whose originators must obtain a RMLO license are as follows:
- Chapter 342 Regulated Lenders (if they originate secondary mortgage loans)
- Chapter 347 Manufactured Housing Creditors
- Chapter 348 Motor Vehicle Dealers (if they originate retail installment contracts secured by dwellings)
- Chapter 351 Property Tax Lenders (if they originate residential property tax loans)
SAFE Mortgage Licensing Act
The Secure and Fair Enforcement for Mortgage Lending Act (SAFE) requires national registration of all Residential Mortgage Loan Originators (RMLO’s) in addition to applicable state licenses.
The SAFE Mortgage Licensing Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and for the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry.
The SAFE Act sets a minimum standard for licensing and registering mortgage loan originators. Specific state licensing requirements can be found at the Nationwide Mortgage Licensing System and Registry (NMLS).
Mortgage loan originators employed by a federally regulated depository or a regulated subsidiary can learn the registration requirements on the NMLS website or from their employer's federal bank regulator.
Statutes & Rules
These are the primary statutes and rules that apply to residential mortgage loan originators. This is not a complete list of laws that residential mortgage loan originators are required to comply with.
Primary State Statute
Chapter 180, Texas Finance Code: Texas SAFE Act
Title 7, Chapter 2, Texas Administrative Code
Other State Statutes
Texas Legislature Online
Federal Statutes & Rules
U.S. Government Publishing Office