Apply for a Motor Vehicle Sales Finance License

If you have specific legal questions, please seek the advice of an attorney.

New applicants for a Motor Vehicle Sales Finance (MVSF) license should review the information below before beginning the application process through NMLS.

Who Needs a Motor Vehicle Sales Finance License?

You may need an MVSF license if you:

• Hold retail installment contracts (Buy Here Pay Here)
• Assign retail installment contracts
• Operate an acceptance company

A sale may be considered financed when the buyer agrees to make payments over time, even if no interest or finance charge is charged. This is a general description and may not apply to every situation. For additional information, review Chapter 348, Texas Finance Code and Title 7, Chapter 84, Texas Administrative Code, which contain the primary statutes and rules governing motor vehicle installment sales.

Not sure if you need a license? Each business is responsible for determining its own licensing obligations. OCCC staff cannot determine whether a particular business activity requires licensure. Businesses seeking guidance may wish to consult a regulatory attorney or regulatory consultant.

How Do I Apply?

Applications must be submitted through NMLS.

• New applicants must create an NMLS account before applying.
• Existing NMLS users should apply through their entity’s NMLS account.
• Be prepared to provide information and documentation required by the application checklist.

Before you begin: If your business operates as an LLC, corporation, partnership, or other registered entity, ensure any required registrations with the Texas Secretary of State, Texas Comptroller, and other applicable governmental agencies have been completed before creating your NMLS account.

If you do not have an NMLS account, obtain IRS documentation that exactly matches your legal entity name and FEIN before beginning the account creation process.

Need an NMLS Account?

Review the NMLS Quick Tips resource to create your account.

For assistance with account creation, system navigation, or document uploads, contact the NMLS Call Center at 1-855-665-7123.

How Long Does The Application Review Process Take?

Pursuant to applicable law, OCCC generally has up to 60 days to review a license application after an application is submitted through NMLS and the required application fee has been paid. Applications that are missing information, documentation, required forms, or responses to deficiencies may require additional review time. During periods of high application volume, review times may also increase.

To ensure a fair and consistent review process for all applicants, OCCC does not expedite application reviews or provide priority review services.

What License Type Should I Select?

• The first MVSF license issued to an entity is a Company License.
• Additional locations operating under the same entity are licensed as Branch Licenses.

A Company License must be obtained before a Branch License may be issued.

Important: Please review the license types carefully before submitting your application as application and NMLS processing fees are non-refundable. Select Motor Vehicle Sales Finance Company License for an initial license and Motor Vehicle Sales Finance Branch License for an additional location under the same company. The NMLS Call Center can assist with navigating the NMLS system and completing the online application process but cannot advise applicants on which license type to select.

Additional Locations

If your company operates from more than one location, each additional location must be licensed as a Branch License. You must first apply for a Company License before applying for any Branch Licenses. Approval of the Company License application is not required prior to submitting Branch License applications.

Trade Names (DBAs/Assumed Names)

Other Trade Name (OTN) licenses are address-specific. In NMLS, each Company License or Branch License is associated with a single address, and OTN requirements are determined separately for each address.

• The first trade name used at an address does not require an OTN license and should be added directly to the applicable MU1 Company License/Application or MU3 Branch License/Application for that address.
• If two or more trade names are used at the same address, each additional trade name requires an OTN license.
• OTN licenses are tied to a specific address and cannot be shared across locations.
• If the same additional trade name is used at multiple branch addresses, each branch address must obtain its own OTN-Branch License.

Example: A branch location operating under one trade name does not require an OTN license. If that same address begins using a second trade name, the second trade name requires an OTN license.

Business Transfers and Ownership Changes

NMLS does not offer a transfer application for Motor Vehicle Sales Finance licenses.

If a business acquires an existing MVSF-licensed company and the acquisition results in a new FEIN, the acquiring business must submit a new Company License application through NMLS.

During the application process, upload documentation demonstrating the transfer event (such as a signed asset purchase agreement or similar supporting documentation) to the MU1 Document Uploads – Additional Requirement(s) section of NMLS. Name the file:

TX Proof of Transfer as of YYYY-MM-DD

If the seller has authorized the purchaser to operate under the seller’s license while the application is under review, applicants must also upload a completed Request for Permission to Operate form to the MU1 Document Uploads – Additional Requirement(s) section and name the file:

TX Permission to Operate as of YYYY-MM-DD

Has Ownership Changed, But the FEIN Remains the Same?

If the business FEIN remains the same, a new MVSF license application is generally not required solely because ownership has changed. Instead, ownership information should be updated in the applicable MU1 Company Record. For assistance updating ownership information in NMLS, contact the NMLS Call Center at 1-855-665-7123.

What Information and Documents Will I Need?

Before applying, review the applicable application Company Checklist or Branch Checklist. Most application delays result from missing information, incomplete documentation, or required forms not being uploaded through NMLS.

Some checklist items may require applicants to complete and upload OCCC forms through NMLS. These forms are available in the Forms section at the bottom of this page.

Need Help with NMLS?

OCCC staff cannot access applicant NMLS accounts, view account information, upload documents, or perform account maintenance on behalf of applicants. For assistance with account creation, system navigation, or document uploads, contact the NMLS Call Center at 1-855-665-7123, Monday through Friday, 9:00 a.m. to 9:00 p.m. ET.

FORMS:

• Business Plan
• Statement of Experience
• Statement of Retail Installment Contracts