The SAFE 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.
Licensing Checklist
Licensing requirements
First: All loan originators need to go to the NMLS website to receive their unique identifier number.
- Go to NMLS webiste and click on Mortgage Loan Originators.
- Follow the instruction to open an account with NMLS. This initial contact with NMLS will only take a few minutes.
- When the account is opened (no money involved at this time) the LO will be issued a unique identifier number that will stay with them for life. LO’s must use this number for admission to all training classes and to register for all examinations. The number will ultimately appear on all 1003’s related to the LO’s work.
Second: Originators should register for and complete the mandated 20 hours of pre-licensing training.
- This can be done by going to the training portion of our website and registering for a class in the LO’s area of the state.
- Those organizations that require training for 30 or more LO’s should contact the Texas Mortgage Bankers Association and ask about arrangements for providing custom in-house training.
Third: The originators need to complete the mandated testing.
- Setting an appointment to take the national component of the SAFE Act test can be done by going to the NMLS website, clicking on Professional Requirements tab, clicking on Testing in dropdown box and following instructions.
- The test for the state component can be arranged by going to the state website (www.sml.state.tx.us), click on RMLO, then Education, then Pre-Licensing Exam, and finally Register for an Exam and follow instructions. If problems occur, call the state at 1-800-275-8246.
Fourth: All LO’s are required to submit an MU4 disclosure statement and obtain fingerprints to be submitted to the NMLS.
- Texas SML will begin accepting submissions through NMLS on April 2, 2010. However, applicants can obtain access and complete all necessary MU Forms prior to that date. For more information visit the NMLS website.
- NMLS will log the MU4 into their records and forward information to the SML here in Texas and the Department of Savings and Mortgage Lending will run the criminal background check and credit report. If the LO has been convicted of or pled guilty or nolo contendere to a felony in the past 7 years they will not be granted a license. If the felony involved an act of fraud, theft, money laundering, breach of trust or dishonesty no state can ever issue a license to that LO.
Visit our FAQ section pre-licensing questions and answers.
NOTE: Relating to Former Licensing in Texas
If an LO has never been licensed in Texas he or she will have to take the 20 hours of pre-licensing training and pass both the state and federal components of the SAFE test.
If an LO has been licensed as a Texas residential mortgage broker or loan officer at some point, they will not be required to take the state component test if they took the state exam to get their broker or loan officer license.
If the license is still active or is inactive (not expired) they will not be required to take the 20 hours of pre-licensing training if they took and reported to the state at least 20 hours of training related to the mortgage industry.
